Outsourcing of Retirement Provident fund (RPF), A Study on DATA-PATH limited
Sharif, Md Jaman
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Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Outsourcing is an effective cost-saving strategy when used properly Social security systems in the United States are very strong. The government as well as the citizen is very much respecting about the retirement benefit. The government makes it masterful for the employer to give the retirement benefit to their employee at their retirement. The Internal Revenue Service (IRS) and the Department of Labor (DOL) instruct the employer to set up the retirement benefit plan to give their employee retirement benefit which is known as “Plan” in the retirement industry. Every employer in the United States who has the retirement benefit plan mandatorily follows the IRS rules and regulations while preparing the report. As a part of maintaining the rules and regulations the employer has to prepare the allocation report and fill up the form 5500. As TPA Third Party Administrator (TPA) this company’s responsibility is to prepare the allocation Report and prepare the Allocation Letter on behalf of the client. The Allocation Report take on the Plan Specification Report, Census Report, Summary of accounts Report, and Plan totals report, Trust Accounting Report, ADP/ACP Testing Report, and Top Heavy Testing Report. My main focus will be on the rules and regulations which is mandatorily maintained by the employer for preparing the Allocation Report which prepared by the third-party administrator on behalf of the client. The Bangladesh government is also concerned and sincere about protecting the right of the retired people. US and Bangladesh retirement policy differs in some important points. Bangladesh has policy for the government organization and very for private sector. And the government rules, people’s right, contribution to the economy, dependency, benefit amount etc. also differs. The employees are getting insufficient amount, no strict policy to reduce discrepancy between highly and non-highly compensated employees, no responsible organization for retirement policy etc. are the subject to modify. It may be possible to bring in a structured policy if govt. changes or reshape the policy. This report will help Bangladesh to improve their retirement provident fund as well.
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