Interim government to enhance the universal pension scheme

The interim government aims to enhance the universal pension scheme (UPS) to establish a more inclusive and sustainable social security network. In line with this objective, the National Pension Authority (NPA) recently held its first board meeting and introduced several initiatives to bolster subscriber confidence. Among these, the NPA decided to ensure a minimum profit of 8 percent on credited funds, calculated annually by June and credited by October, as confirmed by NPA board member Md Golam Mostofa.

To further attract participants, the NPA is exploring options like health insurance and a one-time gratuity within the pension plans. In addition to investing in treasury bonds, board members suggested identifying other low-risk, profitable investment opportunities.

By mid-October, approximately 372,000 subscribers had enrolled across the UPS's four plans—Probash, Progoti, Surakkha, and Samata—with deposits totaling nearly Tk 131 crore. Of this, Tk 125 crore has been safely invested in government treasury bonds. The Samata scheme, specifically designed for low-income citizens, has attracted the majority, accounting for 78 percent of all subscribers. This scheme requires a monthly Tk 1,000 installment, half of which is subsidized by the government.

M Abu Eusuf, Executive Director of Research and Policy Integration for Development (RAPID), praised the interim government's efforts, suggesting that public hearings with each beneficiary group could enhance transparency and subscriber engagement. He also emphasized the need for the NPA to reassure citizens of deposit security to sustain confidence.

The NPA board approved a proposal to seek funding from the Asian Development Bank (ADB) for a dedicated project to reinforce the pension authority’s infrastructure and operations. A project worth $320 million, including $250 million from ADB, has been drafted and is slated for completion by 2028. This project encompasses capacity-building, staff training, a permanent NPA office, and public relations efforts. According to a finance ministry official, initial discussions with ADB have been positive, with the lender expressing interest.

The NPA board also encouraged commercial banks to support the Progoti scheme, tailored for private-sector employees. The UPS, initially introduced by the previous government in August of last year, provides coverage for citizens aged 18 to 50, ensuring a secure income during retirement. Additionally, the government introduced the Prottoy scheme on July 1, aimed at public university employees and autonomous entities. However, due to opposition from university faculty, this scheme was discontinued in August, with no plans for its revival under the interim government.