Universal Pension Scheme sees over 1 lakh enrollers in 9 months

Over the past nine months since its launch, more than one lakh people have registered to join the Universal Pension Scheme – a sluggish response considering its target to bring 10 crore citizens of the country under the social security structure.

The government has allocated Tk42 crore for investment in bonds, utilising funds from the scheme, the pension scheme authorities said in a press release issued on Monday.

The government launched the universal pension scheme on 17 August 2023, with four sub-schemes: Probash, Progoti, Surakkha, and Samata.

Later, a new scheme – Prottoy – was introduced for the newly recruited employees of autonomous, state-owned, and other statutory organisations and their subordinates.

The pension scheme authorities, however, declined to provide specific details about how many have registered for each of the sub-schemes.

Kabirul Ezdani Khan, chairman of the Universal Pension Authority, told The Business Standard that the number of registrations in Probash is quite low, however, the enrolment in the other three schemes – Progoti, Surakkha, and Samata – is satisfactory.

"We have already held meetings with Bangladeshi envoys and labour wings assigned to various countries to increase the interest of expatriates. We have also had discussions with various banks and urged them to encourage expatriates," he said.

The chairman said they have especially sought the help of City Bank and Agrani Bank because a large number of expatriates in Singapore and Malaysia use these two banks to send remittances.

He said it was a voluntary scheme. If people are briefed about its benefits, they will be enthusiastic, adding, "As our manpower is limited, we are seeking the cooperation of divisional commissioners, deputy commissioners, upazila nirbahi officers, and AC lands. They are informing people about its benefits."

In the context of increasing the interest rate in banks, when asked about plans to raise the interest rate of the universal pension scheme, he explained, "The universal pension system is not a static matter. No bank or insurance company can provide as many benefits as pensioners will receive by participating in this scheme."

He said banks and insurance companies offer benefits by deducting operating costs from profits. However, the operating costs of the public pension authority will be fully covered by the government. Consequently, the entire profit amount will be returned to pensioners from the subscriptions they pay.

"We will ensure that no funds from customer subscriptions remain idle. Currently, funds are invested in treasury bonds at an interest rate of 11.50% to 12%. The calculation I have provided is a temporary estimate of the benefits a pensioner will receive at the time of the pension scheme's launch. Pensioners are expected to receive even more benefits than this," he added.

According to the pension rules, in the universal pension system, the more money one puts in as a deposit, the greater the pension they will be able to draw at the end of the term.

On the other hand, this initiative will not deprive low-income people. For the lower-income people, who will deposit Tk500 monthly, there will be another Tk500 subsidy from the government in the beginning. 

In all the schemes, there is an additional multi-fold profit for everyone at the end of the specified period.