The National Pension Authority has decided to bring employees of state-owned companies who do not receive the government’s standard pension benefits under the “Pragoti” scheme of the Universal Pension Scheme. At the same time, the authority approved proposals to introduce an Islamic pension system within the universal pension scheme, raise the age limit for nominee benefits after a pensioner’s death, and set a profit rate of 11.68 percent to 11.72 percent for the 2025-26 fiscal year.
These decisions and proposals were approved at the fourth meeting of the National Pension Authority’s board of directors, held Thursday at the finance ministry’s conference room in the secretariat. The meeting was chaired by Finance Minister Amir Khasru Mahmud Chowdhury. After the meeting, National Pension Authority executive chairman Dr Md Suratuzzaman shared the information with reporters.
He said an initiative has been taken to bring employees of state-owned companies who are not directly covered under the government’s pension system into the “Pragoti” scheme. These employees’ retirement benefits currently depend on their respective company’s employment rules and internal arrangements; they do not receive a state pension the way government civil servants do, for whom a separate government system for pension and gratuity exists. Under this decision by the National Pension Authority, such employees at various state-owned companies and organisations who are not directly part of the government service pension system will get the opportunity to come under the universal pension system. However, the full list of which companies’ employees will be covered, and the implementation method, will be determined at a later stage, sources said.
Maximum profit rate 11.72%
The board approved a proposal to pay a profit rate of 11.68 percent to 11.72 percent on the universal pension fund for the 2025-26 fiscal year. In the previous 2024-25 fiscal year, the maximum profit paid was 11.61 percent. Dr Suratuzzaman said the profit rate was set taking into account the pension fund’s investments and income-expenditure accounts.
Islamic pension system to be introduced
The board also approved a proposal to introduce an Islamic pension system within the universal pension scheme. The Asian Development Bank, along with local consultancy firms, is working on this. The executive chairman said a separate set of rules would be drawn up for the Islamic pension system.
Pension from age 55 under review
The proposal to receive pension from age 55 will be finalised after taking actuarial advice. Dr Suratuzzaman said retirement and pension systems in other countries are also being considered. As an example, he noted that pension benefits begin at age 67 in Spain and age 66 in the United Kingdom. He said average life expectancy in Bangladesh is rising, so the proposal to provide pension from age 55 will be reviewed taking into account financial and demographic realities.
Nominee pension age raised to 80
It has been decided to raise the age limit for a nominee’s pension benefit, following a pensioner’s death, from 75 to 80. The executive chairman said the pensioner’s spouse would receive this benefit until the pensioner would have turned 80.
Withdrawal-and-exit proposal after five years under review
A proposal was discussed under which a participant could withdraw their entire deposited amount and exit the scheme five years after enrolment, though no final decision has been made on this yet. Dr Suratuzzaman said the proposal would undergo further examination. No decision has been made yet on a proposal to offer loans to participants from the pension fund either; this will be reviewed further, taking care to ensure participants are not harmed if loans are introduced, with the loan interest rate to be set based on actuarial advice as well.
Health insurance also under review
The introduction of health insurance alongside the pension scheme will also be reviewed. The executive chairman said a decision would be made after analysing which model to use for health insurance and what financial impact or risk it could pose to the pension fund. No decision has yet been made on adjusting pension profit in line with inflation either; this will be decided once the pension fund grows larger.
Informing migrant workers about pension enrolment before departure
To increase migrant workers’ participation in the universal pension scheme, they will be informed about the programme at the time of departure for overseas jobs. Dr Suratuzzaman said the Ministry of Expatriates’ Welfare and Overseas Employment would work on this. Additionally, to boost participation in the pension scheme, it has been decided to raise the one-time enrolment fee charged by mobile financial service companies from 15 taka to 25 taka. It has also been decided that the pension fund will be audited through a private chartered accountancy firm.