Photo : Collected
Prime Minister Sheikh Hasina on August 17 launched the Universal Pension Scheme, a significant initiative aimed at providing financial security to all people above the age of 18 within the country. Under this scheme, beneficiaries will enjoy lifelong pension benefits once they reach 60 years of age. The introduction of this new social security system reflects its people-centric nature.
The specifics of this scheme, including contribution amounts and monthly pension disbursements, are clearly outlined. To participate, persons are required to make consistent contributions for a minimum of ten consecutive years. The participants have the option to avail a loan equivalent to 50 percent of their fund deposits, which can be used for medical expenses, home-related needs, and their children’s marriages. After the death of the participant, their designated nominee or heir will continue to receive pension payments for up to fifteen years. It’s worth noting that the National Pension Authority under the Finance Division oversees the implementation of this program.
The scheme is structured into four categories: Expatriation, Progress, Protection, and Equality (Probash, Pragati, Surokkha, and Samata). The expatriation category caters to Bangladeshi citizens living abroad, the progress category benefits private sector employees, the protection category supports self-employed individuals such as rickshaw pullers, farmers, laborers, artisans, fishermen, and weavers, while the equality category assists low-income individuals earning less than 60,000 takas annually.
The finance minister highlighted the fact that the average life expectancy in the country is currently 73 years, which is projected to increase to 80 years by 2050 and 85 years by 2075.
This projection implies that a working group of people retiring within the next three decades will have an average post-retirement life expectancy of 20 years. Currently, the dependency ratio in Bangladesh stands at 7.7 percent, but it is expected to rise to 24 percent by 2050 and 48 percent by 2075. Given these trends in life expectancy and dependency ratios, the introduction of a universal pension system becomes imperative as a protection for old age.
The government’s previous initiatives, such as allowances for freedom fighters, the elderly, widows, and disabled individuals, have garnered widespread appreciation. Building on this foundation, the inauguration of the Universal Pension Scheme by the PM is another step towards realising the concept of a welfare state. This model, already established in certain developed nations, has exhibited positive effects on civil society. In a similar vein, our neighboring country India has also recently initiated a comparable program. Despite prevailing global challenges and domestic constraints, the government’s Universal Pension Scheme is commendable. We applaud this great initiative.
TDM/SD
