Universal Pension Scheme 54,000 deposit Tk 43.62cr

Special Correspondent :
When the government first introduced the ‘Universal Pension Scheme (UPS),’ public interest was initially sluggish. However, the tides have turned, with over 54,000 individuals now enrolled in UPS.

Multiple sources report that approximately Tk 43.62 crore has been deposited across four UPS categories. Officials anticipate that the number of beneficiaries will soon exceed one lakh.

The government established various schemes under UPS to cater to different demographics.

These include the Progoti scheme for private sector employees, Probash for expatriates, Surokkha for self-employed individuals, and Somota for underprivileged citizens. Since the UPS launch on August 17 last year, 598 people have joined the Probash scheme, 11,105 have enrolled in Progoti, 16,376 in Surokkha, and 26,580 in Somota.

Golam Mostafa, a member of the National Pension Authority and additional secretary of the Ministry of Finance, expressed optimism about the scheme’s progress and said, “ Despite the initial slow uptake, a significant rise in public interest and participation can no b seen.”

Mostafa anticipates that this upward trend will continue, with enrolment surpassing 1 lakh soon. Additionally, he mentioned plans for a pension fair as part of the campaign programme As part of the Awami League’s 2008 election manifesto, a much talked-about and highly anticipated government venture, the Universal Pension Scheme (UPS), launched on August 17 last year, ushering in a new era for the citizens of Bangladesh belonging to all corners of society.

However, initially, the government launched a universal pension scheme with four schemes, namely Prabas, Pragati, Suraksha, and Samata.
The response was positive from the first day of launching the UPS, which was continuously upward.

According to the pension rules, the more money is deposited, the more pension will be given at the end of the term, as per the pension system.

On the other hand, this initiative will not deprive low-income people either. For those who deposit monthly Tk500, there will be another Tk500 subsidy to be added to the deposited money from the government.

However, there is an additional multifold profit for everyone at the end of the specified period of the UPS.

The NBR has announced that the contributions earmarked for pensions will be treated as investments and will be eligible for tax rebates. Even the monthly pension amount will be exempt from income tax.

The announcement was made on November 8, 2023, by the NBR.

However, the government has introduced a new scheme, Prottoy, for the newly-recruited employees of autonomous, state-owned, and other statutory organisations and their subordinates on March 20.

Employees of these institutions who will join on July 1, 2024, or onwards can enrol in the new scheme.

The Ministry of Finance, in a notification on March 20, said that this scheme will be effective on July 1, 2024.

Under the Prottoy scheme, those who will join autonomous, state-owned, statutory, or homogeneous organisations and their subsidiary organisations as officers-employees are being made mandatory to enter the universal pension scheme.

Through participation in the Prottoy scheme, the financial security of employees will be protected.

Officials and staff members of the companies who have at least 10 years of service age can subscribe to the new scheme if they are interested.

Under the plan, 10 percent of the basic salary, or up to a maximum of Tk 5,000, will be deducted from employees, while the organisation will match the amount deposited by the employees.