A Comparative study of pension system between USA and Bangladesh

Abstract

Data Path Ltd. is a business process outsourcing company which is the only company in Bangladesh who provides 401(k) retirement plan services to USA clients. In this report, I explored different aspects of Retirement plan process in USA and Bangladesh. I have described how effective and well-regulated US retirement plan industry is and how much behind, unstructured Bangladesh pension system are. As a legal binding, all employers in USA are required to offer retirement plan to their employees whereas in Bangladesh only public sector organizations have retirement benefits for their employees. In Bangladesh, Private sector pension system is very unstructured and not all private company has retirement plan for their employees, if any then benefits they provide are much lower compared to the public sector. Bangladesh government need to adopt a Universal Pension Scheme for all private and public service holders. To ensure the transparency of managing the retirement funds, every retirement plan should be audited by a certified auditor. Government may impose legal provision on every company to manage the retirement fund in a proper way. It may only be possible to provide retirement benefits to all private and public sector employees if government pursue a structured policy and impose the law in ‘The Company Act.’ Bangladesh can take the US pension system as a benchmark to start the compulsory pension scheme in private sectors.