The Government has recently announced the issuance of the ‘Universal Pension Scheme Regulations 2023’. On the upcoming Thursday (August 17), Prime Minister Sheikh Hasina will inaugurate the Pension Scheme. The preparations for the launch of this scheme have been undertaken by the Ministry of Finance, covering the districts of Ganabhaban, Gopalganj, Bagerhat, Rangpur, and the Saudi Arabian Embassy in Bangladesh.
As revealed, the Ministry of Finance’s Department of Economic Affairs released the ‘Universal Pension Scheme Regulations 2023’ on Monday (August 13). Under this initiative, individuals joining the scheme at the age of 18 will be entitled to maximum benefits. Currently, the government has introduced four types of pension schemes on an emergency basis. These are: Progoti, Probash, Shurokkha and Samata. Among these categories, the Probash category holds the highest potential for Bangladeshi expatriates to accumulate the most funds. Expatriate Bangladeshis will have the opportunity to deposit up to a maximum of 10,000 Bangladeshi Taka per month to avail pension benefits. The regulations define the eligibility criteria, contribution amounts, and the amount of pension to be received monthly upon the completion of the stipulated period.
Sources indicate that the Pension Scheme includes various categories tailored to different groups. The Emigrant Probash Scheme is designed for expatriates, the Shurokkha Scheme for private sector employees, the Security Scheme for those engaged in informal sectors or self-employment, and the Samata Scheme for low-income individuals. On Thursday, the website named ‘UPension’ will also be launched, allowing individuals to enroll in the pension scheme from that day onwards through the online platform.
As per the regulations, any Bangladeshi citizen holding a national identity card aged between 18 and 50 can become a part of the Pension Scheme. Additionally, individuals over 50 years of age can also join any type of pension scheme based on specific considerations. However, the exact details of the pension scheme for individuals above 50 are yet to be finalized.
For expatriate Bangladeshis who lack a national identity card (NID), they can register based on their passport information. However, it is essential for them to submit their NID to the government within a reasonable timeframe. Those already benefiting from the Social Safety Net program will also be eligible for the pension scheme. In such cases, they will need to forego the benefits they currently receive under the Social Safety Net program.
Bangladeshi citizens residing within the country or abroad will have the option to apply for the National Pension Scheme through an online form provided by the relevant authority. In contrast, they will need to provide a Unique Identification Number (UID) as part of the application process. The application form will require the applicant’s mobile number and, for non-residents, an automated email will facilitate the submission of their UID number, current exchange rate, and date of monthly contribution.
Determining Pension Amount Based on Contribution:
Under the Probash Scheme:
Expatriate Bangladeshis opting to contribute a monthly installment of 5,000 Taka for 10 years will receive a pension of 7,651 Taka per month. For a similar contribution over 42 years, the monthly pension amount will reach 1 lakh 72 thousand 327 Taka.
By depositing 10,000 Taka monthly for 10 years, individuals can obtain a monthly pension of 15,302 Taka. Similarly, contributing the same amount for 42 years will yield a monthly pension of 3 lakh 44 thousand 655 Taka.
Under the Pragati Scheme:
Private sector employees will be eligible for the Pragati Scheme. By depositing a minimum monthly installment of 2,000 Taka for 10 years, they will qualify for a monthly pension of 3,060 Taka. A 10-year contribution of 5,000 Taka will yield a pension of 7,651 Taka.
For those contributing a monthly installment of 2,000 Taka for 42 years, the monthly pension will amount to 68,931 Taka. Similarly, if the monthly contribution of 5,000 Taka is made until retirement (42 years), the pension will be 1 lakh 72 thousand 327 Taka per month.
Under the Shurokkha Scheme:
Individuals employed in the informal sector will fall under the Shurokkha Scheme. By contributing 1,000 Taka per month for 10 years, they will be eligible for a monthly pension of 1,530 Taka. Similarly, a 42-year contribution of 1,000 Taka per month will yield a monthly pension of 34,465 Taka.
Under this scheme, a maximum monthly contribution of 5,000 Taka is allowed. By contributing this amount for 10 years, an individual will receive a monthly pension of 7,651 Taka. Likewise, a 42-year contribution of 5,000 Taka per month will result in a monthly pension of 1 lakh 72 thousand 327 Taka.
Samata Scheme:
Under the Samata Scheme, marginalized communities living below the poverty line will be included. Their monthly contribution will be 1,000 Taka. However, the government will contribute 500 Taka on their behalf. In other words, those falling under this scheme will need to deposit 500 Taka. By contributing for 10 years, they will receive a monthly pension of 1,530 Taka. Similarly, a contribution over 42 years will result in a monthly pension of 34,465 Taka.
According to the Pension Scheme regulations, pension contributions must be made to the designated bank account of the National Pension Authority. Contributions can be made through online banking, credit cards, debit cards, mobile financial service providers (MFS), and any branch of the specified bank.
If the contribution is not made within the stipulated time, a grace period of one month without any penalties will be allowed. If the delay extends beyond one month, a penalty will be imposed at a rate of 1% per day. An option to make advance contributions for upcoming months is also available. Contributions can be made on a monthly, quarterly, or annual basis.
Contributors can utilize 50% of the accumulated amount, along with interest, to cover medical expenses, home construction, renovations, and their child’s wedding expenses. This amount can be repaid in 24 installments.
This scheme is designed to address the needs of the economically disadvantaged sections of society, ensuring their financial security and offering a pathway to a stable future. The diverse options for contribution and utilization make this pension initiative a comprehensive endeavor that caters to the specific requirements of different individuals and families.
