The Universal Pension Scheme 2023 was inaugurated by the Prime Minister of Bangladesh on August 17th. This scheme is a pathway to self-sustained retirement for citizens. Even individuals with modest incomes are going to have the opportunity to prepare for a self-sustained retirement within their financial capabilities. A distinctive sub-scheme named 'Samata' covers this majority, tailoring pension contributions according to their earnings. Aspiring recipients can effortlessly enrol in this universal pension scheme, provided they meet the fundamental criteria. Let's delve into the process, how the low income people in Bangladesh can enrol in the Samata Universal Pension Scheme.
Primary Terms and Conditions of Universal Pension Scheme 2023
Each and every skilled individual across the nation has the opportunity to engage in the universal pension scheme, a platform of financial security. However, this privilege comes with the prerequisite of meeting fundamental requirements.
The inclusive provisions outlined in the Public Pension Management Act of 2023 are detailed below:
- Eligibility spans individuals aged 18 to 50, verified through their National Identity Card or NID. Individuals over 50 can participate, under special consideration, for a decade, becoming eligible for lifelong monthly pensions post 10 years of consistent contributions.
- Commencing the scheme mandates online registration with accurate details. Beneficiaries of existing social security programs can transition into this scheme after their current benefits cease.
- A dedicated account, assigned to each registrant, will manage all aspects of their scheme-related finances.
- Contingencies in the pensioner's lifespan are accounted for. In case of their demise, the recipient's chosen nominee will later receive the monthly pension payments. The duration for which the nominee will be entitled to receive this pension extends up to the principal pensioner's age of 75 years. For instance, if the principal pensioner passes away at the age of 68, the nominee will continue to receive the monthly pensions for the subsequent 7 years.
- The scheme registrant may pass away while actively contributing before the pension scheme reaches its full maturity. In this scenario, the designated nominee will receive the entirety of the funds deposited along with accrued profits. It's worth noting that the contribution period for each tier of the pension scheme spans a minimum of 10 years.
- The government services accessed via Mobile Financial Services (MFS) incur a cash-out charge of 0.70 percent, or BDT 7 per thousand. It extends to this scheme as well, as per a Ministry of Finance circular issued on August 16.
Samata: Universal Pension Scheme for Bangladeshi Low Income People
Table: Monthly pension against the installment rate in the Samata scheme
Monthly Subscription Rate |
BDT 1,000 (Contributor BDT 500 + Government Part BDT 500) |
Total Period of Subscription (in years) | Potential Monthly Pension (BDT) |
42 | 34,465 |
40 | 29,200 |
35 | 19,187 |
30 |
12,466 |
25 | 7,955 |
20 | 4,927 |
15 |
2,894 |
10 | 1,530 |
Source: https://upension.gov.bd/Public/Packages, Bangladesh Gazette, Extra, August 13, 2023
The subscription rate is designed for individuals residing below the poverty line. Only those with an income not exceeding BDT 60,000 per annum are eligible for the Samata scheme. Half of their stipulated contribution is subsidized by the government, while they bear the remaining half.
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Registration Process for Samata Package under Universal Pension Scheme 2023
Access to the pension scheme is channeled through the Unpension website, commencing with the 'Pensioner Registration' menu.
Consent to Basic Terms
A trio of pivotal terms and conditions must be agreed upon initially:
- The applicant must not be employed by governmental or semi-governmental bodies.
- The candidate must not be enjoying privileges from any governmental or autonomous institution.
- The candidate must not be receiving benefits from any social security program.
The registration page can be accessed by clicking on the 'I agree' button below. Without obtaining this consent, the application cannot be initiated. In the event that any exception to the aforementioned conditions is identified subsequent to the commencement of subscription, the complete registration will be annulled. Additionally, individuals who provide incorrect information will not be eligible for a refund of any funds deposited as subscriptions.
Scheme Category and Identification
This marks the first page of registration, wherein the category 'Person in Low Income' must be chosen from the provided options. Subsequently, a 17, 13, or 10-digit NID number, along with the date of birth, will be required to verify identity. A regularly used mobile number and email address need to be provided for communication purposes.
Upon entering the details, an OTP or one-time password will be dispatched to both the email address and mobile number for verification. This OTP is required to be entered in the designated area of the online form. Finally, the captcha below needs to be completed without errors before submission, leading to the commencement of the next section.
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Personal Details
Given that the NID number is provided on the preceding page, the candidate will encounter their personal details, which have been pre-filled. These details encompass the candidate's NID number, photograph, full name in Bengali and English, father and mother's names, as well as permanent and current addresses. In the case of District, Upazila and Division, candidates must select their respective locations from the dropdown lists.
Determining Occupation
In this section, low-income workers are required to select their occupation from the range of occupations mentioned in the list. Within the annual income space, the total income for twelve months must be entered.
Determining Subscription for the Scheme
In this pivotal phase, scheme beneficiaries are to specify the installment of subscription they wish to undertake. Candidates have the flexibility to choose from three modes of contribution: Monthly, Quarterly, and Annually.
Bank Details
The contributor's bank details are required to be entered here. These account details must align precisely with the information provided while opening the account at the corresponding bank. This entails no discrepancies in the account holder's name, account number, or account type, whether it's savings or current.
Each bank is assigned a unique 9-digit routing number, which needs to be inserted in the space adjacent to the routing number. For those unfamiliar with the number, a 'Don’t know the Routing Number' button is available next to it.
Clicking this button will generate a small box containing two separate dropdown lists: one for the bank and another for its branch. The appropriate bank and branch should be selected from these lists. Candidates can also choose a branch near them. As soon as the information is entered, the box will disappear and the corresponding cell next to the routing number will be filled.
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Nominee Section
This is the part of the nominee, responsible for receiving the deposited amount as pension or contribution along with the profit in the absence of the pensioner or contributor. Initially, the nominee's NID number and date of birth will be required, followed by clicking the 'Add Nominee' section below.
Consequently, the remaining portion will include fields for the nominee's mobile number, their relationship with the candidate, and the proportion of the candidate's share they will receive. For a single nominee, the candidate's total amount is required to be entered.
If necessary, candidates can add multiple nominees by clicking the 'Add more nominee' button. Each nominee's respective share must then be specified.
Overall Verification
All information provided thus far will be consolidated in this final section of the application. Registration will be deemed complete upon thorough verification of the accuracy of the details and subsequent submission. After submitting the application successfully, the applicant can download it and preserve it for future reference and potential use.
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How to Subscribe to the Samata Scheme
The information regarding installments will be dispatched to the applicant’s mobile number and email address provided during the online registration.
Each installment must be punctually deposited into the National Pension Authority's designated bank account.
In the event of failure to meet the deadline, a grace period of up to one month will be granted to pay the installment without incurring penalties.
If the installment remains unpaid beyond this supplementary period, a penalty will be imposed at a rate of 1 percent for each consecutive day. Consistent failure to fulfill subscription obligations will lead to the registrant's scheme account being deactivated.
Bottom Line
Pension schemes could potentially give people a scope to secure their future. The low income citizens of Bangladesh can also benefit from the Universal Pension Scheme 2023. The Samata pension scheme has been especially designed to cater to the needs of the low income people of Bangladesh. So far, we have discussed the process of registering for the Samata package under the Universal Pension Scheme 2023. Hope it helps!
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