Universal Pension: Govt forms Nat’l Pension Authority
The government has formed a two-member National Pension Authority (NPA) to execute the Universal Pension Scheme formulated to provide pension services for the common people.
Kabirul Ezdani Khan, additional secretary of the finance division, has been made the executive chairman of the NPA and Golam Mostofa, another additional secretary of the division, has been made the executive member, The Daily Star has learnt from people familiar with the proceedings.
The authority will initially begin its activities with them. The two will serve the NPA in an additional capacity. The scheme is likely to take off at the end of this month or next month. Prime Minister Sheikh Hasina is expected to inaugurate it.
To properly implement the scheme, several rules will be formulated under the relevant law.
One of the rules will pertain to how the beneficiaries will deposit instalments and register themselves with the authority.
Software is being developed for the smooth operation of the scheme.
Like savings certificates, beneficiaries of the universal pension scheme will be able to register themselves at banks. The scheme will initially be available through state-owned Sonali Bank.
The government is considering introducing four types of schemes: private sector jobholders, expatriate Bangladeshis, informal sector workers and the destitute.
For the destitute, the government might come up with a subsidy.
In January, the government enacted the Universal Pension Management Act, of 2023. There will be a 16-member governing body headed by the finance minister.
Secretaries of different ministries, the Bangladesh Bank governor, the Bangladesh Securities and Exchange Commission chairman and the presidents of the Federation of Bangladesh Chambers of Commerce & Industries, Bangladesh Employers Federation and Bangladesh Women Chamber of Commerce and Industry will be its members.
Under the proposed scheme, a beneficiary can enjoy pension benefits subject to the payment of a subscription fee up to the age of 60 if the person enrols between 18 and 50 years of age.
Those who enrol after their 50th birthday will have to pay the subscription fee for at least 10 years.
If the pensioner dies before hitting 75, their nominee will be entitled to the pension.
If the subscriber dies before paying the subscription fee for at least 10 years, the deposited money will be returned to the nominee with the profit.
A subscriber will be able to withdraw a maximum of 50 percent of the deposited amount as a loan.
Contributions to the pension fund will be treated as investments and tax rebates can be availed against it. Besides, the amount received as a monthly pension will be exempted from income tax.
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