In an effort to bring the elderly under a sustainable social security system, the government of Bangladesh has introduced the Universal Pension Scheme today (August 17, 2023). According to Finance Ministry sources, there are four schemes under the Universal Pension: Probas, Progoti, Surokkha and Samata. Through the schemes, private sector employees and migrant workers will get pensions ranging from a minimum of 2.30 to 12.31 times their total installments. People aged between 18-50 can join the Universal Pension Scheme, and those aged 60 and above can avail life term pension facilities. People aged 50 and above can also be included in the scheme, and in that case they will get the pension after providing installments for 10 years. Also read: I want to make everyone’s life meaningful, declares PM Hasina after launching Universal Pension Scheme Registration process Those who want to enrol in the Universal Pension Scheme should register at first and people aged 18 and above can join the scheme by using their National Identity Card (NID). How to provide installment People can pay their monthly installments from home. The authorities concerned have created an app for this. Migrant workers, who do not have NID cards can join the scheme with their valid passports at banking channels, approved mobile banking services, and foreign exchange houses. After completing registration, a number will be provided through which the installment and other procedures can be done. In the rural areas, Union Digital Centres will help people with the registration process and there will be no exchange in the scheme. All dealings will be operated online. The authorities concerned of the Universal Pension Scheme will open an account at the state-owned Sonali Bank and participants will provide their installments each month to the respective account. Also read: PM Hasina rolls out long-awaited Universal Pension Scheme Migrant workers can provide installments from abroad while people can also provide installments to the account directly or through Nagad, bKash and mobile financial services. Progoti scheme for private sector employees Private sector employees can open the Progoti scheme by providing Tk 2,000, Tk 3,000 and Tk 5,000 installments per month. Fifty percent of the installment will be provided by the employees while the rest will be provided by the companies. If any private company does not want to join the Universal Pension Scheme, employees can join the scheme on their own. If any employee joins the scheme at the age of 18 and provides installments of Tk 2,000 per month for 42 years, he/she will be able to get Tk 68,931 as pension per month at the age of 60. During the same period, those who provide Tk 3,000 per month will get Tk 1,03,396 per month, and people who will provide Tk 5,000 installment per month can withdraw Tk 1,72,327 from the scheme per month for life. This means a person who will provide Tk 5,000 installment per month for 42 years will get Tk 3,10,24,800 in total which will be 12.31 percent of the total installments. Also read: Universal pension system to be rolled out from FY 2023-24 Surokkha for informal sector workers The Surokkha scheme will be applicable for self-employed and informal sector workers. Farmers, rickshaw pullers, day labourers, blacksmiths, potters, fishermen and weavers can enrol under the scheme. The installments per month under the scheme can be Tk 1,000, Tk 2,000, Tk 3,000 and Tk 5,000. Those who continue the scheme after providing Tk 1,000 per month will get Tk 34,465 as pension per month after 60 years. Besides, those who provide Tk 2,000 per month can withdraw Tk 68,931 per month after 60 years. People who will provide Tk 3,000 and Tk 5,000 per month would be able to withdraw Tk 1,03,396 and Tk 1,72,327 per month for life as pension, respectively. Samata for the ultra poor Under the scheme, the monthly installment would be Tk 1,000 and the customer can provide Tk 500 per month while the rest will be provided by the government. People living below extreme poverty level can avail the opportunity. If any person joins the scheme at the age of 18 and provides Tk 500 installment per month he/she will get Tk 34,465 per month as pension after 60 years. Besides, people over 50 years will get Tk 1,530 per month after providing Tk 500 as installment for ten years. Read more: PM to inaugurate Karnaphuli Tunnel on Oct 28: Quader Probas for migrant workers For the migrant workers, the government has fixed Tk 5,000, Tk 7,500, Tk 10,000 installment per month under the scheme and if anyone returns to the country before 60 years, he/she can pay the amount through local currency or exchange the scheme. They will get their pension in local currency after their scheme matures. If an 18-year-old migrant workers provides Tk 10,000 per month for 42 years, his/her total amount of the installment will be Tk 50.40 lakh and he/she will be able to withdraw Tk 3,44,655 per month after 60 years till 75. The total amount of pension will be Tk 6,20,37,900 which will be 12.31 percent multiple of the total amount. Under the same scheme, those who provide Tk 5,000 and 7,500 as installment for 42 years, he/she will get Tk 1,72,327 and Tk 2,58,491 per month after 60 years. Meanwhile, if someone provides Tk 5,000 per month for a minimum of 10 years under this scheme, then he/she will deposit a total of Tk 6 lakh. In return, he/she will get a total pension of Tk 13,77,180 after getting Tk 7,651 per month from the age of 60, which will be 2.30 percent more than the total amount. Finance Ministry sources said, the National Pension Authority has sent letters to the deputy commissioners of eight districts--Gopalganj, Sylhet, Rangpur, Pabna, Bagerhat, Mymensingh, Rangamati and Barguna--to introduce the pension on the opening day. The authorities also sent letters to the Bangladesh missions in Jeddah and Kuala Lumpur. Earlier, in the day, Prime Minister Sheikh Hasina rolled out the much anticipated Universal Pension Scheme, aiming to bring all citizens aged above 18 under the coverage. She launched the pension scheme, joining virtually from her official residence Ganabhaban. Participants and beneficiaries were connected from three districts -- Gopalganj, Bagerhat and Rangpur -- and the Bangladesh embassy in Saudi Arabia. Read more: Some foreign powers are taking interest in Bangladesh's election to hinder progress: PM Hasina

The Parliamentary Standing Committee on Finance Ministry on Sunday placed its report on a bill that seeks to introduce a universal pension scheme focusing particularly on the country’s elderly population. Universal Pension Management Bill, 2022 was placed in the House by Finance Minister AHM Mustafa Kamal on August 29.  It was then sent to the parliamentary watchdog on the finance ministry for further examination. The bill says all Bangladeshi nationals aged from 18 to 50 years can participate in this pension scheme. The expatriate Bangladeshis are also eligible to get the benefits. The Finance Division prepared the draft of the bill seeking to bring the growing elderly population under a sustainable social safety net. This will particularly benefit the elderly population when they become jobless or become afflicted with diseases, paralysis, old age or other similar conditions, or extreme poverty amid high life expectancy rate, according to the bill’s statement. Also Read: BERC (amendment) Ordinance placed in JS allowing adjustment of gas, electricity prices without public hearing It says a person will have to provide premium for at least 10 years to get pension from the age of 60 until the death. If an elderly person dies before the age of 75 years, the nominee will get the pension for the remaining time. However, the amount of premium will be determined by a rule under the proposed law. According to the proposed law, there will be a five-member national pension authority headed by a chairman and also a 15-member governing body with the finance minister as its chair. The government will appoint the chairman and the other four members. Finance Minister will be the chairman of the governing body where the other members will be the Bangladesh Bank governor, finance secretary, financial institutions division secretary, NBR chairman, social welfare secretary, secretary of woman and child affairs ministry, expatriate welfare and overseas employment secretary, labour and employment secretary, post and telecommunication division secretary, PMO secretary, BSEC chairman, FBCCI president, Bangladesh Employers Federation president, BWCCI president and the executive chairman. The governing body will hold at least three meetings each year. The main office of the authority will be in Dhaka and its branches can be established in any place of the country taking prior permission. The inclusion in this pension scheme will be voluntarily unless the government issues any gazette for making it compulsory. Committee chairman Abul Hasan Mahmud Ali placed the report.        

The civil society representatives Wednesday demanded the direct inclusion of income taxpayers into the universal pension scheme (UPS), which is expected to be announced in the national budget for the fiscal year 2022-23. They also urged the government to take everyone's opinion into account to design an effective and sustainable scheme at a pre-budget seminar organised by COAST Foundation in Dhaka. Ahsanul Karim, assistant director at COAST Trust, said constitutionally Bangladesh is a welfare state but the approach of the UPS is somehow a commercial instead of being a rights-based one. The income taxpayers will have to be included directly into the UPS as they are key resource mobilisers to develop the country and have the right to get the benefit, he said. Barrister Shamim Haider MP said the proposed UPS is like an investment instrument that needs to be revised for shaping an institutional framework to serve everyone based on their economic status. "The change has to be made before submitting it to the cabinet." READ: Special allocation in budget required for SW coastal districts: Civil society leaders COAST Foundation Chairman Dr Tofail Ahmed said the UPS is now one of the options that can benefit the people who pay taxes directly and indirectly. He recommended bringing the "zakat fund" under a regulatory framework in mobilising substantial resources for UPS through paying tax incentives. Palli Karma Sahayak Foundation (PKSF) Chairman Dr Quazi Kholiquzzaman Ahmad said: "Poor people must be supported through the pension scheme. So, make the pension scheme people-focused within the quickest time," he said.