Enrollment in the Universal Pension Scheme (UPS) is gradually increasing, with approximately 54,000 individuals joining within the span of eight months, as disclosed by Golam Mostofa, a member of the National Pension Authority (NPA) and additional secretary of the Ministry of Finance.
Mostofa stated that around Tk43.62 crore has been deposited in government funds through participation in four schemes. These include 598 enrollments under the migration scheme Probash, 11,105 under Progoti, 16,376 under Surakkha, and 26,580 under Samata scheme.
The “Probash” scheme caters to Expatriate Bangladeshi Citizens, allowing participation by paying the prescribed contribution rate in foreign currency.
Mostofa expressed optimism regarding increasing participation, noting a growing interest among people. He highlighted the ongoing pension fair as part of the campaign to further promote awareness and enrollment.
Under the pension rules, higher deposits correspond to increased pension benefits at the end of the term. Additionally, low-income individuals depositing Tk500 monthly receive a government subsidy of Tk500 from the outset, ensuring added benefits upon maturity.
Despite the promising returns, enrollment remains slow due to lingering doubts about fund returns, according to economists and sector insiders. In response, Mostofa reassured the public, emphasizing the NPA’s commitment to safeguarding deposits through secure investments in treasury bills and bonds.
Introduced on August 17, 2023, the uniform pension scheme targets the entire population aged above 18, providing lifelong pension benefits upon reaching 60 years old. However, widespread awareness remains a challenge, prompting efforts to simplify participation, especially among expatriates, and promote the UPS among the general populace.
Economists attribute the tepid response to issues of trust and institutional governance, emphasizing the need for clarity regarding fund management and investment strategies to instill confidence among potential participants.
