Govt pushes inclusion of bank employees in UPS ‘Progoti Scheme’

The government has directed efforts to be intensified to bring officials and employees of scheduled banks under the “Progoti Scheme” of the Universal Pension Scheme to ensure post-retirement financial security for private sector workers.

The call came at a review meeting held at the Ministry of Finance’s Multipurpose Hall at the Bangladesh Secretariat on Wednesday to accelerate participation of bank employees in the pension scheme.

The Ministry of Finance confirmed the information in a press release stating that the directive came at a review meeting held yesterday at the Finance Building in the Bangladesh Secretariat, where representatives of Bangladesh Bank and managing directors of all scheduled banks participated.

The meeting was chaired by Nazma Mobarek, secretary of the Financial Institutions Division.

She instructed managing directors of banks to take necessary measures to enrol their institutions’ officials and employees under the Progoti Scheme.

A keynote presentation was delivered by National Pension Authority Executive Chairman Dr Md Surujjaman.

He said a significant portion of around 18 million registered private sector workers in Bangladesh remain outside any post-retirement financial security arrangement. While government employees are covered under state pension facilities, no such institutional arrangement exists for most private sector workers.

To address this gap, the Universal Pension Scheme launched in 2023 has introduced the “Progoti Scheme” as an effective and sustainable solution for private sector employees, he added.

During the presentation, proposals to make the scheme more attractive were also discussed, including the introduction of a Shariah-based pension scheme, consideration of lifetime pension facilities for nominees and inclusion of outsourced employees under the Progoti Scheme.

Officials at the meeting said the Universal Pension Scheme has emerged as a landmark initiative to provide organised retirement benefits to employees in the country’s large private sector.

They also noted that the government’s Election Manifesto 2026 pledged to establish a pension fund aimed at ensuring financial security in old age for private sector workers under the chapter titled “Non-discriminatory Socio-economic Development and Sustainable State Capacity”.

Officials said the Progoti Scheme was specifically designed for owners and employees of private institutions.

Under the scheme, employees will contribute 50per cent of the monthly subscription while the remaining 50per cent will be paid by the institution.

Monthly contributions under the scheme range from Tk1,000 to Tk15,000.

Subscribers will receive monthly pensions for life after retirement. Contributions will qualify for income tax rebates, while pension income will remain tax-free.

In addition, subscribers will be allowed to withdraw up to 30per cent of the accumulated fund as a one-time gratuity after turning 60.

The entire investment will remain under state guarantee.

According to information presented at the meeting, a total of 377,930 people had registered under the four universal pension schemes as of 30 May.

Total deposits under the schemes stood at nearly Tk260 crore, while overall investments reached Tk286 crore.

The meeting was informed that the National Pension Authority has already signed memorandums of understanding (MoUs) with 48 banks and financial institutions, while 24 banks are actively engaged in receiving and processing pension contributions.

The participants unanimously decided that representatives of Bangladesh Bank and managing directors of scheduled banks would take necessary measures to include their officials and employees under the Progoti Scheme.

The government has set a target to bring at least one member from each of around 40 million families under any of the pension schemes by 2030, and bankers are expected to play an important role in achieving that target.

To achieve this target, banks have been asked to establish separate pension desks at all branches, display promotional banners, integrate the pension scheme into their marketing activities and bring all employees of private banks under the Progoti Scheme.

Assistant General Manager of the National Pension Authority Ayesha Haque moderated the meeting.