Dhaka gives green light to pensions: social security for 100 million people

Prime Minister Sheikh Hasina has virtually inaugurated the program that extends the social security system to the entire population, hitherto reserved only for civil servants. All citizens between the ages of 18 and 50 will be able to join one of four different pension plans. Emigrants abroad will pay the fee in foreign currency but will receive the pension in taka once they turn 65.

Dhaka (AsiaNews) - A few months before the general elections scheduled for next January, the Bangladesh government has launched a universal pension scheme that aims to give elderly citizens social security and dignity.

Prime Minister Sheikh Hasina, from her official residence in Ganabhaban, virtually inaugurated the long-awaited program which does not include state employees, who already enjoy separate pensions.

Bangladeshis and non-resident Bangladeshis aged between 18 and 50 will be able to join four different pension plans by paying a fixed monthly premium.

“Now all citizens of the country will receive a pension in old age. This regime will give people economic security in their old age and make ordinary people smile," promised Hasina. 

Joining the government's universal program at the age of 18 will provide the greatest benefits. As the membership age increases, the benefits will decrease proportionately. In this way, anyone will get a pension from a minimum of 2.30 times to a maximum of 12.31 times of their total subscription (installment). Experts believe that the universal pension program will make a significant contribution to the country's economy as a whole.

The universal pension system is being launched targeting an audience of 100 million potential beneficiaries (in Bangladesh and overseas), to create an opportunity for protection for the 85% of society engaged in the low-income, informal sector.

The aim is to enable the elderly population to better cope with the consequences of unemployment, disease, disability or complications of old age or extreme poverty, the finance ministry said. People will be entitled to a pension after reaching the age of 60 or over 50 in cases of special need conditions whose details are yet to be clarified by the Ministry of Finance.

Each beneficiary will receive a monthly allowance until his death, with the possibility of accruing the pension after having paid the premiums for 10 consecutive years. Furthermore, in the event of the death of the retiree, the person designated for the survivor will continue to receive the pension until he reaches the age of 75.

Out of the four pension plans, Pragati (development) will be applicable for private sector job holders, Surokkha (security) for self-employed communities, Prabash (migrant) for Bangladeshi expats, and Samata (fair) for people low-income.

Only non-resident Bangladeshis will be eligible for the Prabash scheme. They will have to pay the monthly tuition fee in foreign currency, but will receive the pension in taka when the program expires.

The launch of the country's first universal pension was welcomed by the population. “I am very happy with this announcement, I will join the pension scheme. The universal pension will guarantee me dignity when I am old,” Prodip Gomes, 35, a Catholic and a teacher in a school run by an NGO, told AsiaNews.

• Migrants
• elderly