Universal Pension Scheme set for ‘attractive’ makeover

Subscribers to Universal Pension Scheme will be allowed to withdraw funds after five years of contributions, while the eligibility age for receiving pension benefits could drop from 60 to 55, under a reform package approved by the National Pension Authority (NPA) on Thursday.
The measures, discussed at the fourth meeting of the NPA’s Board of Directors, also include raising the profit rate on subscribers’ investments, extending pension benefits for a deceased subscriber’s nominated spouse, and introducing Shariah-compliant versions of all four existing schemes.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury chaired the meeting at the Secretariat, which considered 11 agenda items. NPA Executive Chairman Dr Md Suratujjaman, also member secretary of the board, conducted proceedings.

Withdrawal after five years
Under the current rules, subscribers cannot leave a scheme once enrolled, leaving their accumulated funds locked if they are unable to continue payments. 

Read More

UN mission suspects US of war crimes in Iran

The board decided to allow withdrawals under specified conditions, such as physical or financial incapacity, once a subscriber has contributed for at least five years. 
The withdrawable amount and precise conditions are yet to be finalised.

Pension age and spousal benefits
The board discussed lowering the pension eligibility age from 60 to 55. 
At its second meeting in May last year, the authority had already permitted subscribers to withdraw 30% of their accumulated funds as a lump sum upon reaching 60.
Separately, the nominated spouse of a deceased pensioner will now be able to receive pension benefits up to the age of 80, up from 75 previously. 

Higher returns, new schemes for state employees
The meeting approved a profit rate of 11.72% on subscribers’ investments for 2025-26, up from 11.68%. 
It also decided to bring employees of state-owned companies not covered by the government pension system under the programme’s Progoti scheme. 
Dr Suratujjaman said such employees currently depend on their organisations’ individual service rules rather than the state pension system that applies to civil servants. 
The list of eligible companies and the enrolment process will be determined later.
Shariah-based option, health insurance under review
The authority discussed preparations to launch Shariah-based versions of all four schemes – Probash, Progoti, Surakkha and Samata – aiming to draw in subscribers reluctant to join interest-based financial products.
A proposal to introduce health insurance alongside the pension programme was also reviewed, though Dr Suratujjaman said the insurance model and its financial implications for the pension fund would need further analysis before any decision.

Contingency fund, audits, higher commissions
The board discussed setting up a reserve fund to guard against risks from long-term inflation and fluctuating investment returns, to safeguard the fund’s sustainability. 
No decision has been made on adjusting pension returns for inflation; Dr Suratujjaman said this would be considered once the fund grows larger. 
The authority also decided to have the pension fund audited by private chartered accountancy firms.
To encourage new registrations, commissions paid to banks, the postal department, mobile financial service providers and union digital centres will rise from Tk15 to Tk25 per subscriber.

Migrant workers, subscriber numbers
Migrant workers will now be briefed on the pension programme before departing for overseas employment, an initiative to be run by the Ministry of Expatriates’ Welfare and Overseas Employment. 
Participation remains lowest under the Probash scheme for expatriates, with only 1,171 registrations, including 97 women, and accumulated contributions of Tk11.87 crore.
Nearly three years since its August 2023 launch, the universal pension programme has registered 379,920 subscribers across its four schemes, with total contributions of Tk288.52 crore. 
The Samata scheme has the highest enrolment, with 287,224 subscribers and Tk56.85 crore in contributions.

How to register
Prospective subscribers must register via the U-Pension website, first certifying they are not employed by any government, semi-government, autonomous or state-owned body, and are not receiving social safety-net allowances. 
Applicants choose from the four schemes and submit their National ID number, date of birth, mobile number and email address, before completing a captcha and verifying via a one-time password sent to their phone and email.