DESIGN AND IMPLEMENTATION OF A COMPUTERIZED PENSION AND GRATUITY SYSTEM

Computerized Pension and Gratuity System is used for collection and processing of pension and Gratuity data and information. Pension is a fixed amount of money paid regularly to somebody during retirement by the government, a former employer, or an insurance company. Retirement Plans, a variety of government, employer, and individual financial programs that help provide a livable income when a person stops working. The three principal sources of retirement income in the United States are the government-sponsored Social Security system, private employer-sponsored retirement plans, and individual savings plans. These three sources of retirement income have often been called the “tripod of economic security.” Most experts agree that people need to receive income from all three sources to remain financially secure during retirement. The two major types of qualified retirement plans are the defined benefit plan and the defined contribution plan. A defined benefit plan is often referred to as a pension. It establishes a fixed formula for determining the precise benefit amount an employee receives upon retirement. Contributions to the plan are made entirely by the employer. There is no fixed formula for how much the employer must contribute to the plan; instead, the employer is obligated to contribute as much as necessary to meet the defined benefit amount.