The cabinet on Monday cleared the draft of Universal Pension Management Act, 2022 in order to bring the growing elderly population under a sustainable and social safety net.
The approval came at the cabinet meeting held with Prime Minister Sheikh Hasina in the chair at her office, reports UNB.
"All Bangladeshi nationals aged from 18 to 50 years can participate in this pension scheme. And the expatriate Bangladeshis can also take part in it. They (expatriates) can get registered and provide premium," said Cabinet Secretary Khandker Anwarul Islam while briefing reporters at the Bangladesh Secretariat.
He said the Finance Division has placed the draft of Universal Pension Management Act, 2022 aiming to bring the growing elderly population under a sustainable social safety net for the causes of unemployment, disease, paralysis, old age or other similar conditions, or penury amid the high life expectancy rate.
Anwarul Islam said the Cabinet gave the final approval to the draft law on condition of vetting by the Legislative Division. "If the legislative Division will okay it, then it will go to parliament," he said.
As per the draft law, a person will have to provide premium for at least 10 years to get pension from the age of 60 until his death, said Anwarul.
If an elderly person dies before the age 75 years, the nominee will get the pension for the remaining time, he said citing an example that if anyone dies at 62, his/her nominee will get pension for 13 years.
However, the amount of premium will be determined by a rule under the proposed law, he added.
According to the proposed law, there will be a five-member national pension authority headed by a chairman and also a 15-member governing body with the finance minister as its chair, said the Cabinet Secretary.
In February last, PM Hasina directed the authorities concerned to work out a universal pension scheme for the people aged above 60 and those who worked in the informal sector in line with the election manifesto of Bangladesh Awami League.
She also witnessed a presentation of "Introduction of Universal Pension System '' which was made by the Finance Division.
Finance Minister AHM Mustafa Kamal has recently announced a plan to introduce a Universal Pension Scheme in the country from the upcoming fiscal year of 2022-23.
He said the implementation of the universal pension scheme will bring a large number of citizens from both the formal and informal sectors under the institutional social safety net.
