The government has decided to establish a Pension Fund Management Authority to manage government employees’ pension fund effectively.

Presently, more than 5 lakh retired government employees are enjoying pension benefits, but there is no designated fund or authority to administer pension related activities of this huge number of pensioners, which may create imbalance in public expenditure management in future.

Initially, the government will allocate a certain amount of fund for the authority. Along with making pension payments from this fund, investment will be made in different portfolios to implement welfare programmes for the pensioners, said Finance Minister AMA Muhith in his budget proposal today.