Finance Minister AHM Mustafa Kamal has said that the government will consult with stakeholders about the modalities of the proposed pension scheme for all citizens of the country, including expatriates.

“The things are now at the study level. We’ll formally talk with all,” he told reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs and the Cabinet Committee on Public Purchase on Wednesday.

The finance minister was responding to a question whether the private companies will have to contribute any amount against their staff’s individual contribution to the pension scheme.

READ: NBR works for win-win tax in upcoming budget: Finance Minister

Meanwhile, the Finance Ministry uploaded a draft law titled: “National Pension Authority Act 2022” on its website seeking public opinions on it.

Interested persons have been requested to send their opinions on it by April 12 this year.     

Earlier on February 23, the finance minister announced that the government will introduce a universal general pension scheme for all citizens of the country including expatriates.

During his announcement he said a government authority will be formed soon and the scheme will come into operation within the next six months to one year.

Under the pension programme, he said, every citizen of the country, aged 18-50, will get back his monthly deposit along with the same amount of government contribution.  “Initially, the scheme will be optional for a citizen, but later it'll be mandatory for everyone.”

He said the idea of introducing the pension scheme was mentioned in the last national budget. “That’s why it doesn’t require further approval in the budget.”

Describing the pension pattern, the finance minister said the citizens will deposit a certain amount of money after every three months.

He said a citizen has to deposit money for 10 years without any break to avail of the return from the scheme on completion of his 60 years of age.

One can take a loan up to 50 percent of the total deposit from the scheme, the minister said.

He said, for example, if a citizen deposits Tk 1,000 per month up to 60 years, he will get Tk 64,776 per month with 10 percent interest and other 6 percent benefits. But if one starts depositing the pension money at the age of 30, he will get Tk 18,908 per month on completion of deposit at the age of 60.

If the amount is over Tk 1000, it will be rationally increased and get the return at that rate, Mustafa Kamal said.      

In the case of the pensioner’s death, his or her nominee will get the benefit up to the pensioner’s 80 years of age.

The finance minister said the scheme authority will finalise the detailed terms and conditions of the scheme. This will be kind of a provident fund of the government and non-government organization, he added.