Subject: Submission of internship report on the use of the American pension plan and its implementation in Bangladesh. The internship report "Using the American Pension Plan and its Implementation in Bangladesh" is something that I am glad to have done. The skills and information gained during the internship are included in the report titled "Using the American Pension Plan and Its Implementation in Bangladesh." This paper attempts to demonstrate the strategy and procedures used by Data-Path Ltd.'s plan processors.
The US Retirement Plan steps, policies, and guidelines are fully covered in Chapter 4.
Introduction
- Scope of the Study
- Objective of the Study
- Methodology of the Study
- Limitations of the Study
The main goals of the internship are to provide the intern with real-world experience, discipline and thorough understanding of a particular field, and to give the employer the advantages of the intern's work. A practical report is expected from him/her based on the findings gained during the practical tasks given to the student. In most cases, for countries like Bangladesh, where competition is increasing rapidly and continuously, this is especially true.
Most of the sources used to get the necessary data are covered within the study's methodology.
Literature Review
Literature Review
The government as well as the citizen highly respects the benefit of the pension fund. The government makes it masterful for the employer to give the benefit of the pension fund to his employee at the time of retirement. The Internal Revenue Service (IRS) and the Department of Labor (DOL) direct the employer to establish the pension fund benefit plan to give their employees the pension fund benefit which is known as.
The government mandates employers to provide pension fund benefits to their employees when they retire.
Industry Analysis
- Outsourcing
- Size, Trend & Maturity of the industry
- External Economic Factors
- Technological Factors
- Barriers to entry
- Threat of Substitutes
- Industry Rivalry
- SWOT Analysis
They are currently outsourcing their business process and reducing the number of workers in the US. Given that this business focuses on the TPA industry, a large market in the United States, there is good potential for it to bring in large amounts of foreign capital. originally only used the most popular business software when they first started. Each TPA customer in the RPF sector uses a separate set of software and operates extremely differently from the others.
The main competitor in this sector is "Fin Source", another RPF outsourcing company based in Bangladesh.
Organizational Overview
- Data-Path Limited
- Vision
- Mission Statement
- Core Values
- Data-Path Limited and its Services
- The Organizational Hierarchy of Data-Path Limited
- Operation Details
Data-Path Ltd, the company where I completed my internship, is Bangladesh's first officially recognized outsourcing company. In the US, July Business Services is a significant player in pension plans. As a professional service provider for its clients, July Business Service has concentrated on the US 401(k) pension business as well as all other administration services.
Thus, July Business Services began to lay off employees and operate most of its business through Data-Path Ltd. Several other US TPA companies saw opportunities in this outsourcing process, as did July Business Services. Financial advisors and plan sponsors now have the ability to select the retirement plan alternative that optimally meets the aspirations of business owners and their workforce through skilled oversight of plan setup, administration, recordkeeping and consulting that stimulates retirement savings in a move that is positively adaptive. , unbiased and trusted, financial advisors and plan sponsors now have the capacity to select the retirement plan alternative that best meets the goals of business owners and their workforce.
The retirement sector is quite important and has a significant impact on this industry in the US. Plan Operation: The Data Path follows all the processes necessary to complete the plan's estimates, calculations and accounting procedures. Investment advice: The money of the company and the employee in an RPF plan does not simply sit in the record holder's bank.
A variety of companies and employees were covered by July Business Services' pension plans, which always showed somewhat noticeable improvement. The proprietary hierarchical business model used by Data-Path Ltd is shown in the chart below:
American Retirement Plan
- American Retirement Policy
- How 401 (k) Plan Works
- Types of Plans
- Types of Defined Contribution Plan
- Stock plans
- Contribution and Deduction
- Primary Plan Document Language
There are two main tax benefits that the government offers to American workers who participate in a 401(k) plan. Some plans additionally provide payments in case the person dies before retirement or becomes disabled. With a profit sharing plan, plan participants can get a settlement in the form of a portion of the company's income or revenue that has been generated as a result of their hard work.
Employee Stock Ownership Plan (ESOPs): Both a hybrid stock bonus and money purchase plan and a stock bonus plan with a selective vesting approach are types of ESOPs and both require that a minimum capital be given in the form or used. to buy the shares of an organization. A defined contribution plan document will detail how the mandatory or optional participation amount is determined in the contributions and allocations section. Deduction of Employer Contributions: In the case of an employer sponsoring a profit sharing plan, money purchase plan, or both, the maximum allowable tax-free contribution is 25%.
Typically, the definition of employee covers all workers, except for non-resident aliens, which entitles them to participate in the program. Due to the frequent cross-referencing of eligibility assessments, these terms may occasionally appear in the plan section of the documentation instead of the definitions segment. In the event that the plan sponsor chooses a calendar year, the plan duration will be from January 1st to December 31st.
In such cases, an odd-numbered plan year serves as the fiscal year, and the plan sponsor may choose from the available options listed in the plan. The term "typical retirement age" encompasses a certain chronological milestone, such as age 65, along with factors such as length of service, length of service and the fifth anniversary of the participant's initial enrollment in the pension plan. If the participant has a relative in the plan and there are two generations above and one generation below.
If the plan passes all the above tests, it is considered to be non-discriminatory;.
Bangladesh Retirement Plan
- Bangladesh Retirement Policy
- Compensation Pension
- Disability Insurance
- The Retirement Saving Scheme
- Retiring Benefit
- Retirement Alternative
- Pension Programs to Family
- Leave preparatory to Retirement (LPR)
- Gratuity
- Government Accommodation
- Benevolent Fund
- Group Insurance
In 1974, a fraction of the final pay was used to calculate pension benefits based on annual salary. Due to the consolidation of government into a smaller number of agencies or organizations that maintain the size of the economy, this retirement money is handed to government employees who have given up their status. Regular employees must receive the same payment for the part of the notice period that is shorter than three months, if a notice of dismissal has been issued.
According to the Bangladesh service legislation, if a participant wants an inactive pension before attaining the age of 57 years, the head of office will authorize the invalidation of the pension based on a medical report. The request for disability pension must be made in the appropriate form, together with supporting data and recommendations from the medical board. The certificate must state the employee's inability to work due to old age.
Family members of a pensionable employee may be eligible for a family pension in the event of the employee's death. He contributes a contribution of Taka 200 per Taka in lieu of the 50% of his gross pension that is required to be paid. The family may use the apartment after the retired employee's term of employment has expired for two years, subject to the restrictions stated from the day of the retired employee's death.
The government has implemented a program known as group insurance where all employees, except those falling within categories III and IV, are liable to pay insurance premiums at the rates fixed by the fund under the authority of the board. In the unfortunate event of the employee's death while on duty, the Foundation will provide financial assistance to their family, with the total amount not exceeding $100,000.
How Bangladesh can Utilize American System
- Promote pension schemes for private companies
- Establishing a Reliable Organization
- Should promote provident funds
- Having a grasp on the contribution
- Should have HCE/NHCE regulations
- Should enhance dependability on oneself
- Solutions to Pension Plan Challenges
In case the government decides otherwise, it provides a retirement program available to all industries in Bangladesh. In case the government decides to implement this alternative approach, a comprehensive retirement program would be available to all industries in Bangladesh. This inclusive initiative would offer eligible Bangladeshi employees significant benefits in terms of special retirement-related benefits provided by the government.
Hence, the government should help in providing incentives and new recruits to encourage bank workers to monitor. Leaders in the policy sector and management teams responsible for putting the underlying social concept into practice have very little free time. 1 In contrast to Bangladesh, the retirement policy in the US is maintained in accordance with IRS, DOL and ASPAA standards.
No single agency is responsible for setting up the pension scheme; instead, the Bangladesh government runs it for those who work for the government. However, Bangladesh lacks proper management and control of pension funds, raising concerns about fraud and transparency within the pension system. To address these problems, the establishment of a supervisory body is necessary to ensure the transparency and integrity of the pension scheme.
Consequently, discrimination is evident within Bangladeshi pension policy, despite the presence of clear anti-discrimination laws in retirement policies, such as those found in the US, intended to prevent disparities among highly compensated employees ( HCE) and non-highly compensated employees. (NHCE). 5 In the US, employees are allowed to increase their annual contributions to pension funds to get better returns after retirement, while in Bangladesh, the pension amount is set by the government, which is disadvantageous to all workers.
Findings, Recommendations and Conclusion
Findings
This made it easier for me to understand how the Bangladeshi and American pension systems differ. Most of the private sectors in our country are behind these pension plans and provident funds. A specific agency in charge of monitoring pension systems does not maintain the openness, standards or rules of retirement schemes.
Due to the lack of a robust pension sector that can invest money in the market, we are also lagging behind in the money market. The size of the pension does not change annually, but the cost of living changes, and this has an impact on the pensioners' standard of living.
Recommendations
Conclusion
An empirical analysis of the impact of information capabilities design on business process outsourcing performance. Retrieved from uiu.ac.bd: Analysis of Datapath Ltd and Business Process Outsourcing Industry in Bangladesh.
