The government is set to form the National Pension Authority (NPA) to execute the Universal Pension Scheme formulated to provide pension services for the common people.

The announcement for the organisation and its activities will be made by Prime Minister Sheikh Hasina most likely in July, The Daily Star has learnt from finance ministry officials involved with the proceedings.

The rules detailing competencies, salaries and benefits for the chairman and members of NPA have already been formulated and the finance ministry has already begun its recruitment.

For now, two additional secretaries of the finance division are in contention for the post of executive chairman.

The executive chairman and members must have a postgraduate degree in one of the following subjects: public finance, economics, accounting, finance, banking, public policy, public administration, actuarial science and public financial management.

The candidate must have 20 years of experience in administrative and executive positions within government or autonomous organisations, including ten years in public financial management. For members, the requirement is 15 years and seven years in public financial management.

Bankruptcy, loan default, moral turpitude and getting penalised by any professional organisations will be considered as incompetencies for the posts.

They can be appointed on deputation or contractual for three years, with the tenure extendable.

The chairman cannot be involved with any other organisation in a voluntary capacity or in exchange for benefits.

The monthly salary for the executive chairman would be Tk 3.5 lakh, which includes a basic salary of Tk 2 lakh and house rent and other benefits of Tk 1.5 lakh.

The members' salary would be Tk 3 lakh, including a basic salary of Tk 1.5 lakh.

They will also get a car and chauffeur round-the-clock.

If the chairman and members are appointed on deputation, they will get salaries according to their grades. For contractual appointments, there would be two festival bonuses and a Boishakh allowance.

Once the NPA is recruited, more rules will be issued to implement the universal pension scheme, according to finance ministry officials.

Initially, two schemes will be launched for expatriates and insolvent people, they said.

In January, the government enacted the Universal Pension Management Act, of 2023. There will be a 16-member governing body headed by the finance minister.

Secretaries of different ministries, the Bangladesh Bank governor, the Bangladesh Securities and Exchange Commission chairman and the presidents of the Federation of Bangladesh Chambers of Commerce & Industries, Bangladesh Employers Federation and Bangladesh Women Chamber of Commerce and Industry will be its members.

In his budget speech, Finance Minister AHM Mustafa Kamal said he was hopeful about introducing the scheme by the next fiscal year.

Under the proposed scheme, a beneficiary can enjoy pension benefits subject to the payment of a subscription fee up to the age of 60 if the person enrols between 18 and 50 years of age. Those who enrol after their 50th birthday will have to pay the subscription fee for at least 10 years.

Expatriate Bangladeshis will be able to participate in the scheme.

If the pensioner dies before hitting 75, their nominee will be entitled to the pension.

If the subscriber dies before paying the subscription fee for at least 10 years, the deposited money will be returned to the nominee with the profit.

A subscriber will be able to withdraw a maximum of 50 percent of the deposited amount as a loan.

Contributions to the pension fund will be treated as investments and tax rebates can be availed against it. Besides, the amount received as a monthly pension will be exempted from income tax.