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Proposal of Internship Report


Retirement Provident Fund: A Comparative Study with USA and

Submitted To:
Assistant Professor: Dr. MD. DULAL MIAH
School of Business
American International University- Bangladesh (AIUB)
Submitted By:
ID# 09-92773-1
Masters of Business Administration (MBA)
Major in Finance

American International University Bangladesh (AIUB)

Date of Submission:

Internship program is a prerequisite for acquiring MBA degree. Before completion of the
degree, each and every student must complete the internship program. Internship, in the
modern business world, helps students to demonstrate skills and competence from their
supervised experience and it also enables them to demonstrate prime of life and acceptable
professional, personal and interpersonal behavior. It is an opportunity for the students to get
familiar with the real life situation through this program.
The proposal of this report on Retirement Provident Fund: A Comparative Study with
USA and Bangladesh. is prepared by Nusrat Alam Moury under the supervision and
guidance of Assistant Prof. Md. Dulal Miah, School of Business, American International
University Bangladesh (AIUB) to meet the requirement of the internship program of MBA.
I am an employee of Data-Path Ltd. from 5th February, 2010. I am learning the important
issues about how the reporting rules and regulations about the American Retirement Benefit

Rationale of the study:

The retirement benefit system in Bangladesh is not so organized both in the public sector and
also in the private sector. The government rules and regulations are not well organized to
protect the employee benefit. Their employees are not aware about their retirement benefit.
The regulatory body to protect the employee benefit is not taking the necessary steps to
protect the employee right and benefit. The rules regarding the employer contribution is not
up to date with the time. The nature of retirement benefit is not specifically defined or
determined in the private sector whether the benefit will be the defined benefit or the defend
contribution. There is no specified benefit plan in the most of the organization which can
give the old age security to their employee. There is no step taken by the employer to reduce
the discrimination among the highly compensated employee and non-highly compensated

Statement of the Problem:

Datapath is an organization doing retirement benefit plan as a third party under July Business
Service of United States. Data-path is doing outsourcing service. The topic of this report
refers to the providing the information about outsourcing of retirement provident fund and it
will help us to know whether it is possible to apply in Bangladesh through private sector and
all possible effected situations may face.

Specific Objectives:
The specific objective of this research is to get an idea about the American retirement benefit
plan and gather knowledge about the rules and regulations regarding the retirement benefit
plan which is issued by the IRS(Internal Revenue Service And the DOL(Department of
Labor) and the Acts passed by the US congress, & the reason for being they are outsourcing
this business to Bangladesh.

Broad Objective:
The broad objective of this research is:

To know about the American Retirement plan Industry.

To know about the governance and transparency of their retirement plan.

To know about the allocation.

To be introduced with their reporting systems and record keeping houses.

To know about the procedure maintained by the employer to narrow up the

discrimination between the highly compensated employee and non- highly
compensated employee when they are making the employer contribution.

To know about the IRS and the DOL oversight function to enhance the transparency
in the retirement plan industry.

To know whether it is applicable in Bangladesh and all possible advantages and


I collect the information for this report from both primary and secondary sources.
Primary Sources:

Observation of the assigned department

Face to face conversation with the respective employers of the department.

Information from employees.

Self experiences.

Secondary Sources:

Various articles, collections, internet etc on IRS, RPF, ERISA.

Previous reports of gone plan.

The study requires a systematic procedure from selection of the topic to final report
preparation. To perform the study, data sources are to be identified and collected. They are to
be classified, analyzed, interpreted and presented in a systematic manner and key points are
to be found out.

Scope of the study:

Scope means the area on which the study has to be done. This report covers the areas
concerned with the process and management of doing retirement plan by Data-path. I
highlight the Allocation department of retirement plan for my study. People who are working
there, their experience, memorandum, gone plan reports everything helps me to make the
study report.

Research Design:
The entire research is based upon the retire provident fund management process of USA.
Firstly it is designed to introduce with the IRS and US Department of Labor (DOL) rules and
regulations and discuss about the Client Report and testing which is actually given to the
client by the third party administrator. Client Report which is given is used in the real world
by the third party administrator though the structure of the report varies depending upon the

third party administrator because most of the TPA do not use the same software to prepare the
Report. Secondly the Annual Testing Requirement will discuss.

Data collection:
Data is collected from the secondary sources mainly from the Internal Revenue Service (IRS)
and Department of Labor (DOL) Guidelines. Another source of data is the ASPPA (American
Society of Pension Professional and Actuaries) directories, publications and ASPPA manuals.
Some information is collected from the ASPPA professionals interviews.


(Employee Retirement Income Security Act) online CD on Retirement benefit plan. The IRS
limits are taken from the IRS website. The different indexes are taken from the cost of living
adjustments (COLA) published by the ASPPA publication committee.


Due to the privacy rule some important information is not shown here.
Most of the materials are collected from the secondary sources and the validity of the

data is questionable in some cases.

As the congress change the rules and regulations every year depending upon the

economic and fiscal policies so it is difficult to compare the result with previous year.
Due to the lack of publication relating to Retirement benefit plan the information

which is collected is not representative

The retirement issue mostly relates to those who are in job situation and the retirement age is
around 60 years. The aspects of retirement in terms of age, old age welfare and social impact
have been discussed in this paper. Retirement due to old age makes the elderly people very
insecure and vulnerable. This problem has been globally recognized in the International
Conference on Population and Development, 1994. Program of Action of the Conference
emphasized that the economic and social impact of the ageing populations is both an
opportunity and a challenge to all societies.