Comparative Study on Retirement Plan between Bangladesh and the United States of America (USA)

Abstract

To promote the physical, financial and mental well-being of employees and their families, employers routinely offer benefits such as health and life insurance, vacation period, disability income and retirement plans. The US government is acutely aware and sincere about protecting the right of the retired people and securing them financially in retired life. The retirement plan also helps the employer to have Tax savings on the profit of the organization if he maintains the method according to IRS & DOL guidelines. Failure to comply with the regulations will result in disqualification of the plan, and it will be subject to penalties. It’s costly for an organization to maintain the activities of a retirement plan. So the organization outsources the business to a third party which is also known as the third-party administrator. The data path is an outsourcing company which processes the activities of a retirement plan. This report is mainly focused on the comparative study on retirement plan between the United States and Bangladesh. The significant finding is that USA’s retirement policy gives more emphasis on the pension plan. Every organization follows the government-sanctioned plan. But in Bangladesh government does not do that, on the other hand, our government has the insufficient amount.