Defined Pension PlanDefined Benefit Pension Plan (DDPP) The current pension plan that BTH provides to its employees is a Defined Benefit Pension Plan. A defined benefit pension plan is an employer-sponsored retirement plan in which employee benefits are divided based on a formula that uses factors such as salary history or length of employment. The employer assumes the investment risk and controls the management of the portfolio. The employer will have to draw on the company's profits when the returns on investments intended to finance the employee's pension are in deficit. Due to the recent stock market downturn, the plan is severely underfunded and it is too risky to continue offering DDPP to new employees. Defined Contribution Pension Plan Under the Defined Contribution Pension Plan, the employer will set aside a certain amount or percentage of money as employee benefits. There are restrictions on when and how they can withdraw these funds without penalties. The amount of the contribution is fixed while the benefit is not. Employees bear the risk for the employer. Accounting for DCPP is simple. The employer records pension expenses equal to contributions. The pension plan presents no additional accounting complications for the employer since the contributions are managed by a trust representing the employee. The employer does not share in any gains or losses on these funds. For BTH, the move from defined benefit pension to defined contribution pension will address the concern of having to incur additional costs arising from the funding gap of the employee benefit plan. From a tax perspective, amounts paid into the pension fund by BTH and employees are deductible from corporate taxes. and personal income tax returns. Em... half of the paper... the last few years. It is important to establish a well-designed performance measurement system and employee bonus plan at BTH. A good bonus/incentive plan will not only increase productivity but also improve quality. Performance measurement should be built around quality and quantity. I recommend recording production statistics such as number of products and number of defects for each individual or team. The performance of each team should be evaluated by management. The team producing the highest quality and quantity will be rewarded to encourage a quality-focused culture. The team that demonstrates the most significant improvement based on the metrics will also be recognized. Employee bonuses are tax deductible. In addition to a tax deduction for expenses, BTH will also receive a lot of goodwill from employees. Bonuses constitute taxable income for employees.