Interim government to maintain Universal Pension Scheme until new system introduced

The interim government has decided to keep the Universal Pension Scheme (UPS) in place until a new system is introduced, according to the Ministry of Finance. 

The decision follows a meeting chaired by Finance Adviser Salehuddin Ahmed on Monday, where the current state of the pension scheme was thoroughly reviewed, reports UNB. 

"The Universal Pension Scheme will continue as it is for now, in line with the adviser's approval," said Finance Secretary Khairuzzaman Majumdar, confirming the outcome of the meeting with UNB. 

The scheme, which was launched last year, aims to provide a sustainable social security framework for the entire population.

Golam Mostafa, a member of the Universal Pension authority, added that during the meeting, discussions covered the four existing schemes under the UPS—Probash, Progoti, Surakkha, and Samata—and their operations. 

"We have briefed the finance adviser on our activities so far. Based on that, he has decided to maintain the current structure until further notice," Mostafa said.

He also noted that the ongoing operations would persist until a new scheme is announced. Regarding investments made from the pension contributions, Mostafa revealed that a total of BDT 1.16 billion (116.69 crore) has been invested entirely in government treasury bonds.

The UPS was introduced to bring people from all walks of life under a comprehensive social security system. Former Prime Minister Sheikh Hasina inaugurated the scheme on August 17, 2023, and registrations began shortly afterward. 

Initially, the then government launched four schemes—Probash (for expatriate Bangladeshis), Progoti, Surakkha, and Samata. A fifth scheme, Prottoy, was later introduced for employees of autonomous and semi-autonomous bodies, but it was later scrapped following protests by teachers.

As of now, 372,094 people have registered for the UPS, contributing a total of BDT 1.23 billion (123.56 crore). Out of this, BDT 1.16 billion (116.69 crore) has been invested in government treasury bonds. Notably, a significant portion of the registrations, about 77 per cent, has come from low-income individuals who are part of the Samata scheme, which targets those earning less than BDT 60,000 annually.

However, the pace of new registrations has slowed since the fall of the Awami League government following student protests. 

A high-ranking official from the Ministry of Finance attributed this decline to the political instability surrounding the government's fall. "It's natural that the registration process slowed during the upheaval," the official said.

The ministry officials believe that once the interim government expands its operations and begins promoting the Universal Pension Scheme, registration numbers will increase again.