National Pension Authority formed

The government has formed the National Pension Authority (NPA) to bring the country's growing elderly population under the universal pension scheme.

The Ministry of Finance issued a gazette notification in this regard on Sunday.

NPA has been formed in light of the Universal Pension Management Act-2023.

The authority, which will be a constitutional body, will comprise an executive chairman and four members.

The finance ministry is preparing rules. "Once the rules are formulated, the government will appoint executive chairman and members," said a ministry official.

Officials say that appointment of the chairman and members will be completed before the upcoming budget.

The expenditure of the authority will be borne by the government.

The authority will ensure introduction, management and development of universal pension scheme, protect the interest of beneficiaries and their money, resolve complaints, carry out research and publicity, take measure to increase skills, fix fees and charge, and maintain accounts.

There will be a 16-member pension-management board, chaired by the finance minister. The board will formulate and approve rules, regulations and guidelines for investment.

All citizens aged between 18 and 50, including expatriate Bangladeshis, are eligible for this scheme.

In order to come under the scheme, one has to pay a fixed amount of premium for at least 10 years. After completing 60 years, the person will get this benefit till death.

The amount of the premium is yet to be determined.

If a beneficiary dies before the age of 75, their nominee will get the pension for the remaining time.

Inclusion in this pension scheme will be voluntary unless the government issues a gazette for making it compulsory.

The deposited premium will be treated as an investment and will be exempt from taxation. The pension will also be exempted from tax.