December 01, 2010 To Director Office of Placement and Alumni American International University-Bangladesh Subject: An authorization letter for

submission of internship report. Dear Sir Enclosed is the report on Comparative Study on Retirement Plan between United States and Bangladesh which is submitted to you as an obligatory part of the fulfillment of the internship program. The entire report is based on practical experience on the American Retirement Benefit Plan and its reporting rules and regulations. This report will help to have in-depth knowledge about the differences between US retirement policies and the policies used in Bangladesh retirement plan. Your proper guidance also helped me to prepare this report. I have tried my best to furnish all the things what I have learned at DataPath Ltd. Besides, I collected the necessary data through structured & unstructured interviews, different publications and related websites. I have devoted my effort to make the report representing the fact. I will be always available to interpret any issue regarding this report. Thanking you Yours sincerely ______________ Mhabubur Rahman ID# 09-92994-2 MBA (Finance) American International University-Bangladesh

Approved By ______________ Mr. Roomee Tareque Moudud Assistant Professor and Director Office of Placement and Alumni American International University-Bangladesh

Letter of Endorsement
The Internship Report entitled Comparative Study on Retirement Plan between United States and Bangladesh has been submitted to the Office of Placement & Alumni, in partial fulfillment of the requirements for the degree of Masters of Business Administration, Major in Finance, Faculty of Business Administration on December 01, 2010 by Md. Mhabubur Rahman, Id # 09-92994-2. The report has been accepted and may be presented to the Internship Defense Committee for evaluation. (Any opinions, suggestions made in this report are entirely that of the author of the report. The University does not condone nor reject any of these opinions or suggestions).

______________________ Professor Dr. Md. Shah Alam Internship Supervisor

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Acknowledgement
First of all I would like to thank Almighty Allah as I have completed the report in due time. I am grateful to those people who helped me in completing the report. I want to bid my heartiest thanks to my supervisor, Professor DR. Md. Shah Alam, American

International University-Bangladesh for his inspiration, guidance, valuable suggestions, sympathetic advice and enthusiastic encouragement throughout my study work.

It is very difficult to complete such work without the co-operation of others. From the very outset, my seniors, colleagues, Team leader, General Manager, International Relationship manager and the President of Data-path Limited helped me by giving their valuable time to provide me suggestions, answering my questions and helping me with different documents and materials. My extreme gratitude goes to Mr. Jim Hudson (President, Data Path Ltd) for giving me the opportunity to do my internship in the organization. I also like to acknowledge Mr Adam Barker, International Relationship Manager, July Business Services and Ashfaqur Rahman, General Manager, Data Path Ltd. for precious support all the time. My special thanks goes to Jamil Uddin Khan, Team Manager, (Allocations) who was the supervisor of this research and gave me valuable suggestions to prepare this report. Thanks goes to Samir Majumder, Apu Ahammed, Rashedul Hasan and other employees of Data Path Ltd and for giving support when I needed. Finally, I would like to thank my friends for their co-operation and honest suggestions.

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Executive Summary
This report explains different aspects of Retirement plan process in USA and Bangladesh. And by making a comparative study I tried to figure out how effective and well regulated the USA Retirement Industry is and how much behind, unstructured we are in Bangladesh in this Retirement Plan sector. Initially the report describes about the USA Retirement procedure. There are some distinct features of US retirement policy for which those are so much popular and widely used by both government and non-government organization even in case of soleproprietorship. This saving policy is so much popular because of Governmental rules, Peoples desire to save, Peoples right to know, Contribution to the national economy, Contribution to the homeland economy. The US government is very aware and sincere about protecting the right of the retired people and securing them financially in retired life. The IRS (Internal Revenue Service) and the DOL (Department of Labor) provides guidelines for the employer to manage the retirement benefit plan to give their employee retirement benefit. The retirement plan also helps the employer to have Tax savings on the profit of the organization. The second phase of the report describes briefly about the Bangladesh Retirement Industry. There are different types of pension system exists both in government and private sector which are unorganized and fully unstructured. No proper guidelines for the retirement benefits like Gratuity, Benevolent Fund, Government accommodation, group insurance etc. In the Third phase I tried to identify how USA and Bangladesh retirement policy differs in some important points. The government rules, peoples right, contribution to the economy, dependency, benefit amount etc. also differs. Finally, based on the findings I made few recommendations like government should concerned and sincere about protecting the right of the retired people. It may be possible to bring in a structured policy if government changes or reshape the policy. This report will help Bangladesh to improve their retirement provident fund as well.

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TABLE OF CONTENTS
Topic Chapter 1: Introduction of Report 1.0 Origin of the Report 1.1 Rationale of the study 1.2 Problem Statement 1.3 Specific Objectives 1.4 Broad Objective 1.5 Methodology 1.6 Scope of the report
1.7 Data Collection 1.8 Limitations

Page No. 1 2 3 3 3 4 4 4 5 6 6 7 7 7 8 9 9 10-13 13 13 14 15 16 16 17-18 19-26 27 28 29-38 39-40 40 40-41 42-43 43-45 46 47-48

Chapter 2: Company Overview 2.0 Introduction 2.1 History 2.2 Getting Started 2.3 Vision 2.4 Mission Statement 2.5 Core Values 2.6 Building Team 2.7 Building Strategic Partnerships 2.8 Service Offered 2.9 Enrollment Materials 2.10 Investment Advices 2.11 Organizational Structure Chapter 3: U.S Retirement Plan Industry 3.1 Background 3.2 Types of Retirement Plan is U.S 3.3 Define Benefit Plan 3.4 Defined Contribution Plan 3.5 Types of Defined Contribution Plans 3.6 Basic Plan Design 3.7 Contributions and Deductions 3.8 Basic Plan Document Language 3.9 Minimum Coverage Testing 3.10 Nondiscrimination Testing 3.11 Some Important Testing definitions 3.12 Actual Deferrals Percentage Test 3.13 If ADP/ACP test Fails 3.14 Allocations Chapter 4: Bangladesh Retirement Plan Sector 4.0 Background

4.1 Pension Systems 4.2 Types of Pensions 4.3 Pension In Private Sector 4.4 Retirement Benefit 4.6 Old Age Allowance Programs 4.7 Non Government Initiatives
Chapter 5: Findings Chapter 6: Recommendation Chapter 9: Conclusion

Bibliography Appendix

49 49-53 53 54-57 57-58 58-59 60-64 65-68 69 70 71

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