Spouse to receive pension until age 80 after pensioner’s death

The National Pension Authority has decided to extend the period for pension payments to a nominee after the death of a pensioner from 75 years to 80 years, with a view to making the universal pension system more subscriber-friendly and participatory.

The profit rate for subscribers of the Universal Pension Scheme (UPS) against investments made during the 2025-26 fiscal year has been set at 11.72 percent, up from the previous rate of 11.68 percent.

The authority has also approved the introduction of a Shariah-based Islamic pension scheme.

National Pension Authority Executive Chairman Md Suratuzzaman shared the decisions while talking to reporters after a board meeting, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, at the Secretariat on Thursday.

Under the existing rules of the Universal Pension Scheme, a nominee can receive the pension until the pensioner reaches the age of 75 after the pensioner’s death.

At the meeting, a proposal was raised to introduce a lifetime pension for the pensioner’s spouse. However, the board decided to extend the period for which a spouse can receive the pension until the pensioner reaches the age of 80.

The pensioner would receive the pension for life, Suratuzzaman said.

Regarding the Shariah-based pension scheme, he said the Islamic version of the Universal Pension Scheme had been approved and would be introduced soon.

He said the Asian Development Bank (ADB) and local consultants are working on the structure and operational mechanism of this new scheme, which will be launched after completing necessary work, including actuarial analysis and formulating regulations.

The executive chairman said the meeting did not decide on reducing the pension-starting age from 60 to 55. “The issue may be placed before the next governing body after discussions with the actuary appointed for the scheme.”

He said they are also considering retirement and pension systems in other countries, and cited examples of Spain and the United Kingdom where pension benefits begin at age 67 and 66, respectively.

As life expectancy in Bangladesh is increasing, the authority will review the proposal based on financial and demographic considerations, he added.

Regarding lending from the Universal Pension Fund, Suratuzzaman said no final decision had been made yet.

“The authority will further review how loans can be provided while ensuring the desired return on the fund’s money, including the interest rate and other conditions.”

A decision on launching a lending programme will be taken after actuarial guidelines and standards are established, he added.