Universal pension scheme to be rolled out in FY24

The government plans to roll out the universal pension scheme in the coming fiscal year.

The Universal Pension Management Act, 2023 has already been passed and Finance Minister AHM Mustafa Kama today said he hoped to roll out the scheme from FY2023-24.

Under the proposed scheme, a beneficiary can enjoy pension benefits subject to the payment of subscription up to the age of 60 years if he or she enrols at the age between 18 to 50 years, whereas those who enrol at their age of more than 50 years have to pay a subscription for a minimum of 10 years.

The expatriate Bangladeshi will be able to participate in this scheme.

If the pensioner dies before attaining the age of 75 years while on pension, the nominee of the pensioner will be entitled to the pension for the remaining period of the pensioner's completion of 75 years.

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

A maximum of 50 per cent of the deposited amount can be withdrawn as a loan by the subscriber by submitting an application.

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.

A pension authority is expected to be established soon.