After being discontinued for 22 months and 19 days, the state-owned Jibon Bima Corporation (JBC) has reintroduced its pension insurance scheme. The new policy, titled “JBC Pension Bima,” was launched yesterday, Sunday. The previous version, named “Individual Pension Insurance Policy,” had been discontinued on 1 December 2023. The features of both policies are broadly similar.
The new scheme was inaugurated yesterday, Sunday at Motijheel, Dhaka, by Md Muhibuzzaman, the Managing Director (MD) of JBC. Alongside this, he also inaugurated a Customer Service Fortnight, which will run from 19 October to 2 November.
According to a press release issued by JBC, the new pension policy and the Customer Service Fortnight were launched under the directive of the Financial Institutions Division, as part of the celebration of “Youth Festival 2025.”
During the opening ceremony, the first premium receipts (FPR) for the new pension policy were formally handed over to two customers, Shayla Sharmin and Sheikh Mohammad Hasan.
Features of the new policy
Regarding the “JBC Pension Bima,” the corporation stated that the policy has been designed with a focus on meeting financial needs during retirement.
Policyholders will receive lifetime pension benefits, and their nominees will also be entitled to pension coverage. Upon maturity, customers may choose to receive benefits either as a lump sum or in monthly instalments.
Additionally, income tax rebates will be available on the premium payments. Individuals aged 20 to 60 years are eligible to purchase the policy.
Premiums may be paid on a half-yearly or annual basis. The term of insurance will range from a minimum of five years to a maximum of 45 years.
The maximum annual pension will depend on the financial capacity of the policyholder, while the minimum annual pension will be Tk 10,000. Pension payments will begin between the ages of 55 and 65.
If the policyholder dies within 10 years of the pension commencement, the nominee will continue to receive the pension for the remaining period of the 10 years.
In the case of the policyholder’s death during the policy term, the nominee will receive 15 times the annual pension amount as a benefit.
Upon the policyholder’s death, a lump sum equivalent to five times the annual pension will be paid immediately, followed by the annual pension for the next 10 years.
Reason for previous discontinuation
In December 2023, JBC’s Engineering and Property Division issued an office order signed by General Manager Hannanur Rashid, discontinuing the Individual Pension Insurance Policy.
The circular stated that the policy was discontinued due to non-profitability, following the recommendation of an actuarial consultant, who advised halting the sale of the product.
This recommendation was subsequently approved by JBC’s Board of Directors, as communicated in the office order dated 28 November 2023.
At that time, JBC’s former Managing Director Abul Khair Mohammad Hafizullah Khan stated that although the agents and customers were benefitting, the government was incurring losses from the pension insurance policy.
Furthermore, since the introduction of the Universal Pension Scheme, the government preferred to shift focus towards that initiative. Considering all these factors, the pension insurance policy was discontinued.