Employers should be familiar with employee benefits during the period of employment, but also what former employees and their beneficiaries are entitled to upon retirement, termination, or death. Moreover, employers must convey this information to employees, former employees and their beneficiaries.
Employers should establish a program in which employees, former employees and beneficiaries are educated about the benefits available to them upon retirement, termination, or death. An employee is faced with several important decisions affecting both the financial and tax consequences of the distribution of his/her benefits. In order to provide an employee with a basic outline of options, it is important to review the various choices available.