The government has approved the draft of the National Pension Authority Act, 2022.
The approval was given at a cabinet meeting chaired by Prime Minister Sheikh Hasina at the Prime Minister's Office on Monday.
Later, Cabinet Secretary Khandker Anwarul Islam gave details of the meeting at the Secretariat.
He said, “It will be vetting now. If approve, it will come up in the parliament. Based on NID (national identification numbers), everyone from 18 to 50 years can participate. Expatriate workers can also take part in it by contributing.”
They will become eligible for monthly pension after reaching 60 years of age, on the condition of a 10-year regular deposit, he mentioned.
“The amount of premium will be determined by rules. If someone dies during getting on pension, the heir will get a pension till the age of 75. There will be no government employees in this scheme. If someone dies before receiving the pension, the heir will get a one-time benefit along with his deposit,” he added.
Earlier, the Finance Minister AHM Mustafa Kamal said separate accounts will be maintained for individuals, which is why there will be no impact in case of changes in their professions or jobs.
“Apart from individuals, institutions also can enrol in the scheme. The option of quarterly payment will also be kept considering the convenience of expatriate Bangladeshis. None will be allowed a one-off withdrawal of their money from the scheme. However, they can take up to 50 percent of their deposited money as loans,” he mentioned.
In case of deaths before completion of the 10-year deposit, the money will be returned with interest. Besides, the deposited money will be exempt from tax.
"Currently, the average longevity is 73 years. It is expected to increase to 80 years in 2050 and 85 years in 2075. The calculation says people will get 20 years longevity after their retirement then. The ratio of dependent people can increase to 24 percent in 2050 and 48 percent in 2075 from the existing 7.7 percent, as well,” Kamal said.
“So, the universal pension scheme is very crucial for ensuring social safety of the old-age people,” he further said.
According to the finance ministry officials, if an individual aged 18 or above deposits Tk1,000 per month, the savings will be around Tk 5,00,000 when they turn 60. But the 60-year-old citizen will be receiving Tk 60,000 per month as pension until death.
The government will invest the pension fund in treasury bills, bonds and infrastructural development projects, and pay a 10 percent interest on it.
For better understanding, a finance ministry official citing an example said that if anyone gives a monthly subscription fee of Tk 1,000 having a 10 percent interest rate and 8 percent gratuity and subsequently starts giving fee from 18 years till 60 years, then he or she would get a monthly pension of Tk 64,776 until 80 years.
“On the other hand,” he said, “If anyone starts giving fee from 30 years and continues it till 60 years, then he or she would get a monthly pension of Tk 18,908.”
But, if the monthly subscription fee goes more than Tk 1,000, then the monthly pension amount would also increase proportionately, he mentioned.
He said that Prime Minister Sheikh Hasina in her election manifesto in 2008 had pledged to formulate a universal pension scheme to bring the elderly people under a sustainable and well-organized social safety structure.