Awami League in the election manifesto of 2008 made a commitment to introduce a universal pension scheme. Although it has happened after 15 years, it is good news. Prime minister Sheikh Hasina inaugurated the pension scheme on Thursday. The finance ministry said about 100 million people will come under the pension facilities.
It is still unclear how 100 million able men and women will be brought under the scheme. The universal pension system has started its journey with four schemes-- Pragati, Surokkha, Samata and Prabashi.
The Prabashi scheme will be applicable for the expatriate Bangladeshis, the Pragati for private job holders, and the Surokkha for self-employed persons and the Samata for low-income people.
In course of time, government employees and autonomous and state-owned organisations' employees will also be brought under the scheme.
The government employees currently get pension facilities after retirement. So it needs to be thought whether there is any necessity to bring the government employees under the scheme.
Those who are self-employed will be brought under the pension scheme. These people struggle with their income to meet daily expenses. How will they pay installment for the pension scheme? Those who have no income, how will they pay installment money for the pension scheme? The government said housewives who don't earn can participate in the pension scheme. They will pay the installment from the income of other members of the family.
Under the Samata scheme, the government has decided to give half of the monthly installment for low-income people. This is laudable. A majority of the labour sector are engaged in the informal sectors. They don't have the ability to pay installment regularly. Besides, an alternative arrangement has to be made to bring the unemployed people under the scheme.
Although the universal pension scheme is a pro-people scheme, its implementation is complex. The countries which have been successful in this scheme, most of the people of those countries are able to pay the installments. But most of the people in our country do not have that ability. It is important to answer questions which surface in the public mind. Minimum economic security has to be ensured to bring all able men and women under this programme.
Economists have welcomed the universal pension scheme. At the same time, they have raised questions as to in which sector the money collected from the people will be spent.
If the money is invested in the productive sector, the economy will be accelerated. If the money is invested in the non-productive sector, the economic risk will increase.
Meanwhile, people have shown interest in the scheme. After the inauguration, around 40,000 have registered in the last few days. 1000 people have already given installment. This is good news. However, many good initiatives could not be successful due to mismanagement and corruption in the past. Transparency and accountability have to be ensured to take the universal pension scheme forward. Besides, inconsistencies have to be removed.