Final answer:
The best cost-effective retirement planning program a benefits manager should consider is offering defined contribution plans such as 401(k)s and 403(b)s, coupled with providing educational resources to employees on retirement savings. These plans are beneficial for their fixed, regular contributions, tax advantages, portability, and their ability to combat inflation.
Step-by-step explanation:
If a benefits manager is looking for a creative and cost-effective program to assist employees with retirement planning, the best choice to consider is offering defined contribution plans such as 401(k)s and 403(b)s. These plans are beneficial because the employer contributes a fixed amount to the worker's retirement account on a regular basis, which are tax-deferred, and portable if the employee moves to a different employer. Furthermore, the contributions made towards these plans have the potential to generate real rates of return, helping retirees to maintain their purchasing power against inflation, unlike traditional pension plans that can be affected by these costs.
Additionally, providing education on retirement options and encouraging employees to contribute to their retirement savings can be a cost-effective way to enhance the perceived value of the company's benefits package. This could include inviting employees to the benefits office for discussions on retirement planning, which aligns with option C from the given choices, but without the significant financial commitments required by options B and D.
In contrast, relying solely on government-mandated retirement programs or offering a pension plan with a vesting schedule would involve more significant financial obligations for the employer. Moreover, paying out retirement benefits in one lump-sum payment could lead to significant tax implications for the retiree and is less beneficial in terms of long-term financial planning. Therefore, option C in conjunction with defined contribution plans appears to be the most advantageous and cost-efficient strategy for both the employer and the employees.