Daccanomics
The much-anticipated ‘Universal Pension plan’ is set to be officially launched today. Prime Minister Sheikh Hasina will inaugurate the program virtually from Ganobhaban.
The ‘Universal Pension Management Act, 2023’ was passed during the last session of the National Parliament. The law was approved by the then-president, Abdul Hamid, on January 31, and a notification was issued on August 13.
Under the new law, different segments of the population will participate in specific pension schemes: expatriate Bangladeshis in the expatriate scheme, private employees in the Pragati scheme, self-employed individuals in the protection scheme, and low-income citizens in the Samata scheme. The pension program will initially launch on a limited basis.
This program will provide pensions for individuals aged 18 to 50 years. The monthly subscription will range from a minimum of 1000 taka to a maximum of 10,000 taka, with the possibility to adjust the subscription amount. The pension system will be entirely online, eliminating cash transactions. Subscriptions can be made using mobile financial services.
The Ministry of Finance is launching this program on an experimental basis through the National Pension Authority. A separate office will be established for this authority, and its implementation will be overseen by an Executive Chairman. The program aims to include citizens in a sustainable pension structure, and it will be facilitated through memoranda of understanding (MoUs) with various agencies.
The ‘Universal Pension Management Act 2023’ intends to provide a lifelong pension to individuals who contribute for at least 10 years. The program seeks to ensure that all citizens between the ages of 18 and 50 can participate based on their National Identity Card. The law establishes provisions for various aspects of the pension scheme, including contributions, eligibility, benefits, and taxation considerations.
