The government has delineated seven sectors where the Universal Pension Scheme funds can be invested, explicitly excluding private enterprises. This provision is part of the Universal Pension Scheme (Investment and Preservation) Regulations, 2024, officially gazetted on July 9 and signed by Finance Ministry Additional Secretary Dilruba Shaheena.
These regulations, pursuant to the Universal Pension Management Act, 2023, stipulate that the investment of pension funds collected through contributions will be determined by regulation. The pension law emphasizes low-risk investments, with guidelines for investing pension funds in government securities and other low-risk securities.
Permissible investment avenues include treasury bonds, treasury bills, other government securities (such as Shariah-compliant Sukuk), fixed deposits in high-rated scheduled banks, mutual funds approved by the Bangladesh Securities and Exchange Commission, A category bonds listed on stock exchanges, and securities of projects implemented or under implementation by the government or its agencies. No more than 25% of the funds can be invested in any single sector other than government securities. The regulations expressly prohibit investing the funds in private enterprises.
A committee chaired by a member of the National Pension Authority will manage the funds. The committee includes representatives from the Ministry of Finance, Dhaka University, the Bangladesh Securities and Exchange Commission, and the Bangladesh Bank. The general manager (fund management) of the pension authority will serve as the committee’s member secretary.
The committee can open separate bank accounts in state-owned banks for different schemes under the Universal Pension Management System, into which all scheme funds will be deposited. Any actions taken by the executive chairman or any member or employee of the authority regarding the preservation and investment of the funds prior to the issuance of these regulations will be considered valid if they align with these regulations.
Md Golam Mostofa, a member of the National Pension Authority, stated that these regulations had been formulated in accordance with the law to ensure low-risk investments for the fund’s money, clarifying the permissible sectors for pension scheme funds.
