Topic: Internship report submission on "Factors influencing the choice of retirement plan in the United States of America". It is my great pleasure to present the practice report entitled "Factors Influencing Retirement Plan Choice in the United States." which has been assigned to me as a partial requirement for the Bachelor of Business Administration degree competition. Practice membership report titled "Factors Influencing Retirement Plan Choice in the United States." was prepared by Rabia Boshory for the BRAC Business School (BBS) degree, Major in Marketing and Finance. The report has been accepted. and will be presented to the Practice Protection Committee for evaluation. Any opinions, suggestions made in this report are entirely those of the author of the report. The University neither accepts nor rejects any of these opinions or suggestions).
Staff of the ERISA (Employee Retirement Income Security Act) department for giving me the opportunity, appointment to the internship program that I completed. A study of the factors influencing the choice of retirement plan in the United States." I got a chance to continue my internship program with Data Path Ltd which is a period of four months from October 1, 2021 to January 31, 2022. It is very interesting as we don't have that kind of pension scheme in our country.
Objective of the report
Broad Objective
The internship program also helps to strengthen skills and get a chance to become familiar with the office environment.
Specific Objective
Methodology
I collect information from secondary data which is very important to know the industry well. We use Unify system software and DGEM software, which helps me get the historical database. From here, I do some analysis, try to connect with our planning system and find the difficulties of the retirement plan.
Problem Statement
Limitations of the study
Organizational Overview (Data Path Ltd.)
Organizational Vision & Mission
Founding Partners
Services
Compliance Testing: Its account representative provides full compliance testing services to maintain the integrity of the client's plan. With the help of the financial provider, July Business Company provides high-quality technological tools to the participants and ensures financial security in the future. Payroll Services: For the provision of pension and payroll services, the company will offer various services so that customers have less burden and increase the level of efficiency and accuracy.
The company gives some guarantees to the strongest industries, but the main motto of the company is to continue the salary payment always flawlessly..
Organizational Structure
Retirement Plan
- Employee Benefit Plans
- Welfare benefit Plans
- Pension Benefit Plans
- Defined Contribution Plans
The Employee Retirement Income Security Act specifies any plan, fund or program operated by the employer or employees for employee welfare benefit plans. This also covers retirement benefit plans where employees must meet eligibility requirements to receive special tax advantages under the Internal Revenue Code. Pension benefit plans are an employer-based program that is based on factors such as length of service and salary deferrals.
Personal account plans, such as profit sharing plans or Income Deferral for periods extending up to or beyond termination of employment. Tax advantage agreements are elaborated extensively in various sections that are not in the comprehensive list. Through a profit-sharing plan, employees can be rewarded with a share of the employer's revenue, which was generated in part because of their efforts.
The plan does not provide specific amounts for each year, it always contains an individual formula for the contributions made to the participants. All plan participants who are eligible to participate in the profit sharing contribution receive $500,000, a specific participant refund is $50,000, the contributor will be distributed from the employer contribution, or. For that employer often chooses a profit sharing plan for employees, because based on its financial situation, employees can guess how much money they should contribute each year.
Savings Incentive Match Plans for Employees (SIMPLEs) are designed to meet the needs of small businesses and are intended to simplify the administration of qualified plans for them. To encourage employees to actively save for retirement and to increase the use and appreciation of employer plans, numerous employers today sponsor the highly popular salary deferral plan described in Section 401(k) of the Internal Revenue Code. With the perhaps dubious distinction that it is more commonly and commonly known by its Internal Revenue Code Section number than by its descriptive name, this type of Qualified Cash or Deferred Salary Arrangement (CODA) profit sharing plan is referred to by both the public and the practice. as a 401(k) plan.
Topic Analysis and Discussion
Factors that influence the choice of Retirement plan
On the other hand, 35% of the employees are aged 21 to 30, as the company hires employees from trainees. This information is very important because different genders may have different opinions and their pension plan may differ. 50% of the employees have a bachelor's degree, 25% of them have a master's degree and 25% of them may have a higher degree or something else.
Sometimes people get divorced in which case the spouse can pay for the retirement plan benefits. From the survey, we found that 60% of employees follow the pension plan for financial reasons. Most people want to participate in the pension plan because they get financial support in their old age.
In America, whatever an employee earns, most of the money is cut off by the government. For choosing a suitable pension plan, employees should focus on understanding the need, determine the time frame and also the investment goal etc. From the study, we saw that 78.9% of employees focus on the purpose of investment and 10.5% of people focus on meaning and need.
80% of the employee have separate retirement account and 20% of the employees do not have this account. After the retirement age of 65, most people get frustrated because in the long run there is a cash flow on their hand. But if employees have big investments in portfolio, they gain confidence for the new phase of life.
Here, 65% of people agree and 25% strongly agree that funding a pension will provide financial security. A public trust fund is a government-maintained savings scheme for employed or self-employed people. In order for employees to get financial support after retirement if they fall ill with a serious illness that is expensive.
SWOT Analysis
Providing services with fully secure software and IT function: Datapath uses some software through which this company provides services to its customers. The Software is wholly owned and secured by Datapath so that no outside parties can access it. Obtaining remittances for the country: Datapath offers services to American customers, so that after the work is done, the income becomes a remittance for our country's economy.
Inability to communicate with the customer face-to-face: Datapath provides service to its US customers from Bangladesh. This is a weakness because face-to-face conversations can increase the chance of getting the client's work. Trust July Business Services: July Business Services is the parent company of Datapath.
New Business Expansion: Datapath is a company that provides service to the American customers for their retirement plans and so many other plans for their companies. Market for High Quality IT Education: Datapath is an IT based company so here employees will get a lot of high quality IT education to work here. In the future this company may also cooperate with other countries and form more alliance which will be very useful for our country's economy.
Not well known in the industry: Datapath is a new company for Bangladesh, so the company is not well known to customers in Bangladesh. Customers are not obligated to make promises: Customers are not obligated to make promises, so if they cancel their work, the company will have nothing to do without losing the customer.
Activities Undertaken
- Organizations Wide Activities
- Work Activities
- Work Related Activities
- MAJOR FINDINGS
- LEASSONS LEARNT
- CONSTRAINTS/CHALLENGES
- Organizational Problems Identification
After the changes, I take a few files from the DGEM system and upload them to the Unify system. In DGEM System we search for the plan in which we need to work, download the plan, complete the work and upload it to the Unify system. To prepare this first, I need to go into the software and open the plan form.
Over time, Data Path has built its own culture, which includes practices such as arriving at the workplace at 9:00 am, giving salaam when seniors are in the presence of juniors, referring to elders as Bhaiya/Apu and asking to a senior to take a break. Outlook is used for formal communication with the JULY service to the US, as well as for delivering completed specified work. In the Datapath ERISA department, please provide us with a PC with dual monitors to work properly and complete the work faster.
Working environment: Data Path provides a very good working atmosphere that is properly structured and under the supervision of the management. Every day, a large number of plans arrive, and our team leader distributes the work between the members. In some situations, if a team member is unable to visit the office, the work is shared among the remaining team members.
During my internship at Data-Path Limited, I was able to witness some of the company's limitations and problems. During the introduction I was given an overview of Data Path's activities, but it took me a while to put the pieces of the puzzle together. So at first it was quite difficult to understand the work, but the days passed and I got used to the work.
Communication gap: All the staff were doing their work as usual so it was difficult for me to communicate with them.
Recommendation
Recommendation for Organization
Recommendation for BRAC
CONCLUDING STATEMENTS
July Business Service, (2021) Retrieved from https://www.julyservices.com/about-us 3. 2018), Management Information System, 14th edition, Pearson Education. 2015), Operation Management 12th Edition, McGraq-Hill Education.
