Labonnya Liza; Dbarta24 – In a major push to make the Universal Pension Scheme more attractive, the National Pension Authority has proposed a series of flexible policy changes, including allowing subscribers to withdraw their funds after five years under special circumstances, enabling pension benefits from the age of 55, and providing lifetime pensions to surviving spouses.
The proposed reforms were slated for presentation on Thursday during the fourth board of directors meeting of the National Pension Authority at the Secretariat, chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury.
The board will review an 11-point agenda, and approved measures will proceed toward implementation.
Launched on August 17, 2023, to cover approximately 100 million citizens across four demographics, the Universal Pension Scheme currently operates through four distinct programs: Pragati, Suroksha, Samata, and Probas. Over the past three years, a total of 379,920 subscribers have registered across these four schemes, accumulating total deposits worth Tk 288.52 crore.
The Samata scheme has garnered the highest participation with 287,224 subscribers and Tk 56.85 crore in deposits, whereas the Probas scheme for expatriates recorded the lowest response, enrolling just 1,171 individuals (including 97 women) with Tk 11.87 crore deposited.
Public engagement has remained subdued due to structural limitations, notably lower returns compared to traditional bank deposits and a lack of immediate liquidity prior to retirement.
Addressing these concerns, the authority has proposed allowing subscribers who face physical or financial incapacity to withdraw their deposited funds after five years of contributions—a significant shift from the existing rigid framework where early exit resulted in forfeited contributions.
Additionally, the authority is seeking to reduce the pension eligibility age from 60 to 55 years. Another major amendment focuses on post-demise benefits: under current rules, if a pensioner dies before turning 75, the nominee receives benefits only for the remaining duration up to that threshold.
The new proposal guarantees a lifetime pension for the deceased subscriber’s spouse. These updates build on a prior decision made during the authority’s second board meeting in May last year, which allowed subscribers to withdraw a 30 percent lump sum of their accumulated balance upon reaching the age of 60.