Pension scheme: What will happen if the govt changes

Can the universal pension scheme be abandoned due to personal outrage or political reasons? What will happen if the government changes?

In response to these questions National Pension Authority executive chairman Kabirul Ezdani assured that there is nothing to doubt the security of the universal pension scheme.

He said, “The pension scheme won’t be abandoned due to personal or political outrage. The change of government, its longevity and the development works of the government is one aspect. Another aspect is what the people want. The people want assurance of their money. Trust is a key factor of the pension programme. People are taking part voluntarily. Nobody is forcing them. The government just took the initiative to launch the scheme.”

This official in charge of the pension scheme further said, “The premium deposited by the people in the pension scheme is being saved in their personal bank accounts. That money won't go to the pension authority. The responsibility of the authority is to invest the deposited money in a proper place and return it to the people with benefits.”

National Pension Authority’s executive chairman Kabirul Ezdani made these remarks while addressing a discussion on the universal pension scheme at the Metropolitan Chamber of Commerce and Industry (MCCI) auditorium in the capital on Tuesday.

MCCI president Saiful Islam presented the welcome speech at the event. Top-level officials of different companies in the private sector were present at the discussion.

Prime minister Sheikh Hasina inaugurated the universal pension scheme on 17 August. A total of four schemes under the names of Probash, Pragati, Surokkha, and Samata have been launched. Any Bangladeshi aged above 18 can enrol in the scheme to get pension facilities during retirement life after paying the instalments until reaching the age of 60.

Besides, the people aged over 50 can also be included in any of the schemes under special consideration. The National Pension Authority under the finance division has been given the responsibility to run and implement the pension-system.

While presenting the keynote at the discussion, Kabirul Ezdani said, “Pension is a protection, not an asset. If someone deposits a certain portion of income under the pension scheme, he or she will get pension during the retirement life, which will ensure financial security during old age. Therefore, it’s not right to compare it with properties.”

He said, “The government will ensure the security of the pension money. However, the money will be deposited in the name of the depositors. The people under the pension scheme will get more than they deposited. Inflation will also be taken into account in this regard.”

“There are several products in the market for deposit. You will have to take the best one. You will have to raise the flaws in the pension scheme if there is any. We want to make it transparent and accountable,” Kabirul Ezdani added.

MCCI president Saiful Islam said there are several organisations which have provident fund and gratuity facilities for their employees. The employees of these companies can also take part in the universal pension scheme.

There are many companies where the employees have doubts about getting money from provident funds and gratuity in future. The universal pension scheme is also unique from this point of view as the government is the custodian of the pension money here. It’s the responsibility of the government.

Saiful Islam further said nobody can claim that they haven't got back the money after depositing it in a savings certificate. So there should be no doubt about the universal pension scheme.

A cabinet meeting was held at the prime minister’s office on Monday. In the meeting, the prime minister, during the unscheduled discussions, directed the concerned persons to increase monitoring to stop people from being influenced by negative propaganda against the universal pension scheme.

Cabinet secretary Md Mahbub Hossain disclosed this while briefing on the cabinet meeting at the secretariat.

He said, “The universal pension scheme has been launched. However, many are spreading propaganda against this historic initiative. So the prime minister has directed the concerned to make the people aware of the actual information, accomplishments of the government, what it’s going to do and how the people will benefit from this. People inside the government will talk about it to apprise the people of the matter and they will answer the questions regarding this. Besides, the information ministry will take measurements regarding this.”