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The National Pension Authority has taken an initiative to introduce six new benefits to make the Universal Pension Scheme more attractive.
The proposed benefits include allowing subscribers to withdraw their savings under special circumstances after five years of contributions, providing lifelong pensions to spouses after a pensioner’s death, starting pension payments at age 55, introducing an Islamic pension scheme, providing health insurance, and increasing commissions for institutions that register subscribers.
The proposals will be presented at the fourth meeting of the National Pension Authority’s board of directors at the Secretariat on Thursday (September 17).
A total of 11 agenda items have been included in the meeting, which will be chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury. Proposals approved by the board will later be implemented by the National Pension Authority.
Currently, four schemes are operating under the Universal Pension Scheme—Pragati, Surakkha, Samata and Probash. The system was launched on August 17, 2023, targeting nearly 100 million people across four categories.
According to the National Pension Authority, the number of registered subscribers across the four schemes has reached 379,920, nearly three years after the scheme was launched. Their total deposits stand at Tk 2.8852 billion.
Withdrawal After Five Years
Under the current system, subscribers cannot withdraw from a scheme once they join. Those who are unable to continue paying contributions may face complications regarding their deposited money.
Under the proposed changes, subscribers who have contributed for five years could be allowed to withdraw their savings under special consideration if they become physically or financially incapable of continuing.
Lifelong Pension for Spouses
The authority has proposed providing a lifelong pension to a pensioner’s nominated spouse after the pensioner’s death.
Under the current rules, subscribers receive a lifelong pension until their death. After their death, no family member receives a regular pension. However, if a subscriber dies before reaching 75, the nominee receives pension payments for the remaining period until the subscriber would have turned 75.
Pension From Age 55
Currently, pension payments begin at age 60. The new proposal seeks to lower the age to 55.
At the second board meeting of the National Pension Authority in May last year, a decision was also taken to allow subscribers to withdraw 30% of their accumulated funds in a lump sum after reaching the age of 60.
Islamic Pension Scheme
The authority has also proposed introducing an Islamic version of the Universal Pension Scheme for people who wish to avoid interest-based financial arrangements.
Higher Commission for Financial Service Providers
The commission paid to institutions for registering subscribers under pension schemes is also proposed to be increased. The current commission of Tk 15 would be raised to Tk 25.
Banks, the postal department, mobile financial service (MFS) providers and other authorised institutions would receive the commission for registering subscribers through their platforms.
Reserve Fund to Address Inflation
The agenda also includes a proposal to establish a reserve, or contingency, fund to address the risks arising from long-term inflation and changes in rates of return.
The National Pension Authority said a decision may be taken on establishing such a fund to ensure the long-term financial stability of the pension fund.
