The employees are required to be assured about the safety and security of their jobs despite takeovers.
The points to be discussed in the memo include the post - retirement benefits of the employees of the organization that has been acquired. The human capital is the most essential part for the success of any organization. As and when, there is a merger or acquisition taking place, the employees often feel unsafe about their professional career. In order to, have the professional faith retained among the employees; the management of the company should inform the employees of the acquired firm about the revised perks and perquisites that are on offer. Also, the management of the company should clearly focus on the post – retirement benefits like the pension schemes (namely defined benefit pension schemes and the defined contribution pension schemes). It is prudent for the management of the company to keep the employee force informed about the proposed integration of both the prevailing segments along with the two schemes of the post – retirement benefits.
Defined Benefit Pension Scheme – Defined Benefit Pension Schemes, often known as the DB pension schemes are the simplest form of the post – retirement benefits. The benefits i.e. the pensions are calculated on the basis of the predetermined formulae. Basically, the defined benefit pension schemes, which are the traditional schemes in the periphery of the post – retirement benefits, are contributed by the employers. But, employees might also contribute. There are several factors upon which the benefit depends (i.e. the variables of the formulae) and that include prevailing mortality rates, scheme assets, rate of return for the investment and changing regulatory rates among others. The tradition DB pension schemes are observed to be losing their popularity in the recent past to the DC (Defined Contribution)