Universal Pension

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The Universal Pension (Bengali: সার্বজনীন পেনশন) is a system of the Bangladesh Government's pension arrangement. Benefits vary depending on the age of the individual and their contribution record. Anyone can make a claim, provided they have a minimum number of qualifying years of contributions.

Background[edit]

In the manifesto published by the Awami League for the 2008 general elections, the party promised to formulate a pension system for all classes of citizens.[1] On 30 June 2016, while presenting the budget plan for the fiscal year 2016-2017, Abul Maal Abdul Muhith, the then finance minister, expressed his interest in introducing a pension scheme for private sector employees and revamping the country's pension system. As the number of senior citizens is increasing in Bangladesh, he proposed this plan considering their safety.[2] In 2019, the introduction of universal pension system was announced in the budget speech for the fiscal year 2019-2020.[3] In the same year, Muhammad Abdul Mannan, the planning minister, had informed that the proposed pension scheme for senior citizens would be universal and a special cell in the finance ministry had already started working to implement it.[2] On 17 February 2022, Sheikh Hasina, prime minister of the country, directed the Finance Ministry to enact a law for this new pension system as soon as possible after presenting the prepared strategy paper on universal pension system at Ganabhaban.[1] On 30 March 2022, the draft of Universal Pensions Act was published.[4] Finance Minister Mustafa Kamal announced on 9 June 2022 that the universal pension system would be introduced in the fiscal year 2023-2024.[5] 6 July 2023 The National Pension Authority was constituted to implement the universal pension system.[6] The universal pension was supposed to be launched in July 2023, but the launch date was confirmed on 17 August 2023.[7][8] Sheikh Hasina inaugurated the universal pension system on the promised day.[9]

Overview[edit]

Policy[edit]

Universal pension will be regulated through Sonali Bank.[7] From September 2023, any Bangladeshi citizen between the ages of 18 and 50 can get this pension voluntarily, in the future this pension will be mandatory for all. In order to get pension, a citizen has to contribute for at least ten years, the amount of which he can specify himself. If the person dies before the age of ten, the money will be given to their heirs. In the case of private employees, if the organization joins the universal pension, the amount of contribution will be fixed by the National Pension Authority. Failure to ensure payment of full contribution before the end of the year will result in suspension of the pension account for a temporary period which can be activated by payment of arrears. Once the pension account holder attains the age of 60 years, they will continue to receive pension at a monthly rate which will be equal to the total amount of their accumulated amount plus the dividend received from investments. In case of death 5 years before attaining the age of 80 years the pension of the individual will be paid to his nominee. Half of the deposited amount can be availed as money loan. If a person contributes continuously from the age of 18 to 42 years, they will get ৳64,776 per month as pension from the age of 60 and if someone contributes from the age of 30 to 30 years, he will be given ৳18,908 per month as pension from the age of 60.[3]

Types[edit]

Four types of pension will be provided under Universal Pension:[7][8]

  • Progoti: It is for employees from non-governmental organizations. Its monthly subscription rate is from ৳1,000 to ৳5,000.
  • Surokkha: It is for self-employmed people. Its monthly subscription rate is from ৳500 to ৳5,000.
  • Somota: It is for low-income people who are living below the poverty line. Its monthly subscription rate is ৳500. 50% of the subscription will be provided by the government.
  • Probashi: It is for citizens working in foreign land. Its monthly subscription rate is from ৳500 to ৳5,000.

Implementation[edit]

The governing board will manage the system that consists of 15 members.[4]

Reaction[edit]

An editorial published in Jugantor termed the scheme as "a great and groundbreaking step" and said it would improve the standard of living of the people of the country.[10] Although this pension system is called "universal", according to economists, it is not universal because not all classes of citizens have the means to participate. They call it "contributory pension". According to economists, the purpose of the government's introduction of this pension system should be to try to bring maximum number of citizens of the state under pension.[11] The universal pension system has been criticized by opposition political parties. Some parliamentarians took a stand against the law on the management of universal pensions when it was tabled in the National Parliament. According to Member of Parliament and Jatiya Party politician Mujibul Haque, there is no difference with the deposit pension scheme of banks. Also unclear is the government's contribution to universal pensions. Member of Parliament Rezaul Karim Bablu expressed doubts whether people will actually benefit from this universal pension as there is a pension system for government employees in the country but many of them are not getting the pension benefits after retirement due to administrative complications. Fakhrul Imam, another Member of Parliament of the Jatiya Party, considers this pension system to be in conflict with the country’s constitution. According to Yawar Saeed, a fund management expert, it is a good initiative if the government cannot use pension money arbitrarily without accountability.[12] On 18 August 2023, Mirza Fakhrul Islam Alamgir, the Secretary General of the Bangladesh Nationalist Party, alleged that the government wants to embezzle people's money and hold the upcoming election by introducing this pension system.[13] Bangladeshi Islamic scholar Sheikh Ahmadullah praised the intuitive and also called on the government to introduce an Islamic scheme under the same system.[14]

References[edit]

  1. ^ a b "সার্বজনীন পেনশন: জরুরিভিত্তিতে আইন প্রণয়নের উদ্যোগ নিতে প্রধানমন্ত্রীর নির্দেশ". Samakal (in Bengali). 17 February 2022. Retrieved 15 August 2023.
  2. ^ a b "ষাটোর্ধ্ব সবার জন্য আসছে পেনশন সুবিধা". Banglanews24.com (in Bengali). 17 February 2022. Retrieved 15 August 2023.
  3. ^ a b "সর্বজনীন পেনশন ব্যবস্থায় মাসে পাওয়া যাবে ৬৪ হাজার টাকা". RisingBD.com (in Bengali). 23 February 2022. Retrieved 15 August 2023.
  4. ^ a b "সার্বজনীন পেনশন আইনের খসড়া প্রকাশ, ১২ এপ্রিল পর্যন্ত মতামত দেওয়ার সুযোগ". The Daily Star (in Bengali). 30 March 2022. Retrieved 15 August 2023.
  5. ^ "সার্বজনীন পেনশন আগামী অর্থবছর থেকেই: অর্থমন্ত্রী". Bdnews24.com (in Bengali). 9 June 2022. Retrieved 15 August 2023.
  6. ^ Karim Byron, Rejaul (6 July 2023). "Universal Pension: Govt forms Nat'l Pension Authority". The Daily Star. Retrieved 16 August 2023.
  7. ^ a b c Kashem, Abul; Abdullah, Sheikh (12 June 2023). "জুলাই থেকে সর্বজনীন পেনশন ব্যবস্থা, মাসে দিতে হবে ৫০০-৫,০০০ টাকা". The Business Standard (in Bengali). Retrieved 15 August 2023.
  8. ^ a b "সার্বজনীন পেনশন কর্মসূচির উদ্বোধন বৃহস্পতিবার". Bangladesh Sangbad Sangstha (in Bengali). 14 August 2023. Retrieved 15 August 2023.
  9. ^ "আমার প্রতি আস্থা, বিশ্বাস ও ভালোবাসা অব্যাহত রাখুন: অনুরোধ প্রধানমন্ত্রীর". Amader Shomoy (in Bengali). 17 August 2023. Retrieved 17 August 2023.
  10. ^ "সর্বজনীন পেনশন স্কিম: জনকল্যাণমুখী এক বড় পদক্ষেপ". Jugantor (in Bengali). 24 February 2022. Retrieved 15 August 2023.
  11. ^ Swapan, Harun Ur Rashid (10 June 2022). "সার্বজনীন পেনশন স্কিম : যেমন হতে পারে, যেমন হওয়া 'উচিত'". Deutsche Welle (in Bengali). Retrieved 15 August 2023.
  12. ^ Islam, Sayedul (25 January 2023). "সর্বজনীন পেনশন তহবিল কি ব্যাংকের ডিপিএসের মতো?". BBC Bangla (in Bengali). Retrieved 15 August 2023.
  13. ^ "সর্বজনীন পেনশন টাকা চুরির নতুন ফন্দি : ফখরুল". Kaler Kantho (in Bengali). 18 August 2023. Retrieved 19 August 2023.
  14. ^ "সার্বজনীন পেনশন ব্যবস্থা নিয়ে যা বললেন শায়খ আহমাদুল্লাহ". Channel 24 (in Bengali). 17 August 2023. Retrieved 18 August 2023.

External link[edit]

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