One of the painful aspects of our society is that many people live in miserable old age. Many of them never have their own children by their side. It happens as some of them don’t have savings, and this status pushes them into jeopardy at age. In that case, some of them live in their homes helplessly, many of them take shelter in Old Age Homes.
To get rid of such a miserable life, one need social or the state support. But the story of Pension benefits is only scheduled for the government employees. In this very situation, Prime Minister of Bangladesh Sheikh Hasina has come forward with a generous heart to end this miserable life of all the people of this country.
You can also read: Welfare State & Universal Pension Scheme
On August 17, a transformative stride was taken by the government, introducing a sweeping pension plan for citizens aged 18 to 50. While the age bracket might ideally span 25 to 60 years, the initiative’s commencement is undeniably positive. Departing from the conventional pension models resembling life insurance schemes, contingent upon deposited sums, the Universal Pension Scheme unfolds a pro found philosophy. Its core principle lies in furnishing social security during the retirement phase, relinquishing the pursuit of extravagant dividends and compounded interests. The central aim? Ensuring a fundamental post-retirement sustenance, transcending the mere realm of financial gains. In this novel system, early participants, those who embark on the pension journey at age 18, stand to reap the most substantial benefits. However, a nuanced consideration emerges. In a context where educational pursuits span a quarter-century and the gateway to government employment opens at age 30, a more fitting threshold for pension participation might be 35.
This adjustment, though, comes with an inherent trade-off: as entry ages increase, pension advantages inevitably recede. The spectrum of rewards, ranging from 2.3 to 12.3 times one’s contributions, paints an engaging crescendo. Yet, the potential symphony’s resonance could be dulled by the ceaseless march of inflation, eroding the future value of these disbursements. A lamentable reality underscores the modest government contributions, rendering the scheme less accessible for the poverty-stricken masses.
DISSEMINATION OF EACH SCHEMES CONNECTING WITH HUMANE PERSPECTIVE
Under this humane safety net in Bangladesh, the government has introduced four distinct schemes— Progoti, Surokkha, Somota, and Probash—to embrace citizens from every corner of society within the folds of the pension system.
Progoti, a beacon of hope, extends its embrace to the workforce of private companies. Be it the diligent employees working tirelessly or the very architects of these organizations, all are welcomed to partake in this scheme. It signifies a promise to safeguard the future of those who contribute daily to the engines that drive our economy. It’s an assurance that their dedication will be reciprocated with a support system that values their labor.
Surokkha, a pledge to the unsung heroes of the informal sector, stands as a tribute to the farmers, rickshaw pullers, laborers, blacksmiths, potters, fishers, and weavers—the backbone of society often toiling in obscurity. This scheme seeks to illuminate their lives with the light of security and respect. It acknowledges that even though their work may lack formal titles, its significance is immeasurable.
Somota is an outstretched hand to those struggling under the heavy burden of poverty. It beckons the low-income individuals who currently navigate life within the confines of a maximum yearly income of Tk 60,000. A heartfelt promise that poverty won’t define their fate, that a dignified existence is their right too. It is a mechanism to lift them from the fringes of subsistence, providing an opportunity to live, not just survive.
For the sons and daughters of the land who have journeyed abroad, Probash becomes a bridge that connects them back to their roots. Whether they seek distant shores for work or residence, this scheme assures them that even in the embrace of foreign lands, their homeland holds a safety net. It is a testament to the fact that no matter the distance, their connection with their motherland remains unbroken.
SCHEMES IN NUMBERS
Under the captivating allure of the Probash scheme, a mere investment of Tk 5,000, Tk 7,500, or Tk 10,000 per month for a decade unlocks a climax of rewards. A crescendo of anticipation builds as the scheme matures, culminating in a crescendo of financial freedom – monthly pensions of Tk 7,651, Tk 11,477, and Tk 15,302 respectively, echoing like a harmonious melody through the years. Not to be outshined, the Progoti scheme extends its invitation with an arrangement of three enchanting instalment options – Tk 2,000, Tk 3,000, or Tk 5,000 per month. Gazing at the horizon of possibilities, one discovers that a decade-long investment of Tk 2,000 each month metamorphoses into a soothing pension of Tk 3,060, serving as a soothing balm for the years to come.
Venturing deeper into the realm of security, the Surokkha scheme beckons with the allure of four installment choices – Tk 1,000, Tk 2,000, Tk 3,000, or Tk 5,000. Within this sanctuary of financial planning, a magical promise is woven: in exchange for a monthly commitment of Tk 1,000, an enchanting pension of Tk 1,530 awaits after a decade’s embrace. As if from a tale of benevolence, the Somota scheme unfolds, weaving the essence of community spirit. A monthly installment of Tk 1,000, borne equally by participant and government, leads to a destiny where a pension of Tk 1,530 is the key that unlocks a life of comfort.
These symphonies of security and stability are painted on the canvas of flexibility, with the option to deposit installments monthly, quarterly, or annually. And what makes this journey even more accessible is the spectrum of choices for depositing – from mobile financial services to online banking, credit, or debit cards, resonating like a harmonious rhythm of convenience.
Yet, like any profound orchestration, the harmony is occasionally interrupted. A missed installment resounds as a mere minor note in this grand composition, promptly notified to the depositor along with its accompanying fine, urging all to tread with diligence. For institutions joining this movement, a partnership is forged – the organization and its employees lock arms to dance in the rhythm of stability. The very fabric of the workforce transforms into an ensemble, harmonizing towards financial empowerment.
But the most breathtaking crescandal lies in the empowerment for the pensioners themselves. The scheme grants access to 50 percent of the deposited sum as a loan, orchestrating dreams into reality – whether for healthcare, home construction, repairs, or the celebration of a child’s union. This loan, repaid in 24 instalments, echoes with the cadence of opportunity.
And what of the twilight years? The symphony does not falter. Pension benefits serenade the pensioners throughout their lifetime. Even in the shadow of departure, the promise remains steadfast – if the pensioner’s journey concludes before the age of 75, their nominee inherits the mantle, drawing the soothing notes of the pension until the original depositor’s 75th year.
Yet, like any profound orchestration, the harmony is occasionally interrupted. A missed instalment resounds as a mere minor note in this grand composition, promptly notified to the depositor along with its accompanying fine, urging all to tread with diligence
REGISTRATION PROCESS FOR UNIVERSAL PENSION SCHEME
The video offers comprehensive insights into the registration procedure for the universal pension scheme. Moreover, it provides clear explanations of its assorted advantages and regulations. The introduction of a website named ‘Upension’ marks the launch of the universal pension scheme. Individuals wishing to enroll for the scheme can complete the registration process by accessing the National Pension Authority’s website at: www.upension.gov. bd.
People who are interested need to make sure they fill out every section of the registration form with correct info. If you put in wrong or false details during registration, they’ll scrap your application and you won’t get your money back. Once you’re here, a new window will show up with two choices. You’ll see an “I agree” option at the top, and right below it, there’s another one that says “Login” for folks who already have an account.
In the third pop-up, they’ll prompt you to start the registration process. You’ll need to pick the scheme first, and then enter your national identity number, date of birth, mobile number, and email address.
After you complete the Captcha, this screen will move you to the next one. If you successfully fill out the Captcha, a new window will pop up, requesting you to enter the one-time password (OTP) sent to the mobile number you provided in the previous step. Now, you’ll see window number five pop up. In this section, you need to provide in-depth details about yourself across five separate tabs: Personal Information, Scheme Information, Bank Information, Nominee Information, and the Complete Form tab.
On this page, you’ll find the applicant’s NID number, photo, names in both Bengali and English, father’s name, mother’s name, and present as well as permanent addresses, based on the NID details provided in the previous section. On this part, you need to specify your annual income, mention your occupation, pick your division, district, and upazila (subdistrict).
Once you’re done with this, you’ll proceed to another page titled ‘Scheme Information’. Here, you’ll have to select the monthly donation amount and the preferred payment frequency. You’ll have three choices for payment intervals: monthly, quarterly, and annually.
Next, you’ll need to input your bank details. In this section, you’re required to provide the bank account’s name and number, specify the account type (savings or current), mention the bank’s name and branch, and provide the routing number.
Moving on to the next page, you’ll need to provide nominee details. Here, you’ll have to enter the nominee’s national identity card number and date of birth. You have the option to include more than one nominee. On this page, you’ll need to provide additional details about the nominee, such as their mobile number and relationship with you.
Moving to the final phase of registration, referred to as the ‘Full Form’. Here, you’ll see a summary of your personal information, chosen scheme, bank details, and nominee information. If any errors are spotted on this ‘Full Form’ page, you can make corrections. If everything looks accurate, the registration process will conclude once you provide your consent.
CHARTING LINE WITH THE CONVENTIONAL FINANCIAL INSTRUMENTS
Amidst the prevailing economic turmoil characterized by a substantial budget deficit fuelled by money printing, the unveiling of a universal pension scheme has sowed seeds of scepticism about its credibility. Set against a backdrop of capital and deposit crises in commercial banks, instances of loan fraud, money laundering, and frequent loan rescheduling, public trust in the financial sector has been severely eroded. This has given rise to a perception that public pensions might not be a noble government endeavour, but rather a potential avenue for misappropriation and exploitation. Conventional sources of funding, like savings certificates, bonds, bank loans, and contributions from autonomous entities, have dwindled significantly. This has raised suspicions that the public pension system might be utilized as a means to accumulate funds, particularly in the absence of substantial consequences for significant financial misconduct. The lack of accountability for major financial scandals exacerbates concerns about the eventual accessibility of funds within the pension scheme.
Transparency in the utilization and investment of collected pension deposits also raises apprehensions. While pensioners have the option to access half of their deposited sum through a bank loan, it is imperative that pension funds don’t transform into a convenient solution for masking budget deficits in other domains.
Queries about the fairness of retirement benefits and the level of contributions from employers and the government for the pension accounts of low-income retirees are also pertinent. Under the Somota scheme, designed for low-income individuals, a monthly subscription of Tk 1,000 is set, with applicants covering one part and government subsidies supporting the other. However, this presently yields an amount that can barely afford less than 2 kg of beef. The future purchasing power of this sum is also highly uncertain due to inflationary pressures. The inflation-associated distortion of Bangladesh’s poverty thresholds underscores the need for a recalibration. Reality demands that extreme poverty shouldn’t be pegged at $1, but rather closer to $3. Relying on current purchasing power parity benchmarks risks inaccuracies in identifying those below the extreme poverty line, potentially excluding vulnerable individuals from their rightful retirement benefits.
The exclusion of recipients of social benefits from the universal pension scheme is problematic. The current poverty alleviation approach in Bangladesh, with allowances ranging from Tk 600 to Tk 900, falls short of effective poverty reduction. A comprehensive pension program, strongly supported by the government, is crucial for the disabled and elderly disadvantaged. Protecting the informal labor sector, which comprises the extremely poor and low-income individuals, rests squarely on the shoulders of the state. While the Progoti scheme doesn’t mandate participation from private employers (except select reputable corporations), many might not willingly contribute. Additionally, segments of society such as farmers, rickshaw pullers, and workers in construction and transportation cannot bear the monthly payments stipulated by the Surokkha scheme, which range from Tk 1,000 to Tk 5,000. Those grappling with basic necessities like food, nutrition, and medicine cannot be expected to partake in such a pension program. Thus, a government contribution of at least 25 percent of the deposit appears imperative.
Looking ahead, the goal of enlisting 100 million pensioners from the labor market fails to consider provisions for the unemployed within the universal pension scheme. Given the substantial number of unemployed individuals, addressing future unemployment benefits and pension coverage becomes a vital concern.
COMPARISON WITH OTHER COUNTRIES
In the pursuit of establishing a universal pension scheme, it becomes essential to evaluate its alignment with international standards, particularly those set forth by the International Labour Organization (ILO).
The ILO has been instrumental in guiding the development of pension systems in numerous countries, providing technical expertise and insights. Many economies, renowned for their comprehensive social security systems, have drawn on ILO assistance. Noteworthy examples include the Netherlands, Denmark, Germany, Australia, India, Canada, Iceland, and Switzerland. These nations have successfully implemented schemes that prioritize the wellbeing of their citizens, reflecting a commitment to inclusivity and social welfare.
Learning from the operational and safety frameworks of these countries could potentially infuse the new scheme with transformative power, catalyzing the economic growth and prosperity that is urgently needed. By borrowing insights from these established systems, Bangladesh’s pension scheme could become a catalyst for meaningful economic change. Given that the universal pension scheme is a cornerstone of income elevation and economic inclusivity, certain key factors must be underscored. Foremost among these is ensuring competitive and secure returns for those who entrust their funds to the scheme. This financial incentive becomes pivotal in attracting participants and sustaining the scheme’s viability in the long run.
Moreover, the principles of good governance and meticulous fund management must be upheld. Transparent practices and efficient management of public funds will be instrumental in fostering public trust and confidence in the scheme. This emphasis on integrity and responsible management will serve as a bedrock for the scheme’s success.
PENSION SCHEME ON PATH OF WELFARE STATE
A Welfare State is a society in which the government takes a proactive role in promoting the well-being and quality of life of its citizens. It’s a concept built upon the principles of social justice, economic equality, and human dignity. In a Welfare State, the government provides a safety net of social programs and services to ensure that all individuals, regardless of their socio-economic background, have access to basic necessities such as healthcare, education, housing, and a decent standard of living.
Likewise, the universal pension scheme stands as a monumental stride towards realizing the ideals of a Welfare State. Departing from the customary approach of relying on deposited sums and financial gains, this pension scheme embodies a profound philosophy: to provide social security during retirement, ensuring a fundamental sustenance beyond mere financial gains. Yet, challenges loom, and questions arise. Economic turmoil, skepticism, and concerns of misappropriation cast shadows on the scheme’s credibility. Discrepancies within the framework persist, raising concerns about transparency, fairness, and accountability. The universality of the scheme, aligned with global standards, beckons the question of whether citizens will trust their funds to a government in uncertain times.
The scheme’s paramount objective is to encompass the nation’s burgeoning elderly population within a sustainable social safety net program, an essential void that yearns to be filled. With the proportion of elderly individuals projected to surge from 11 percent in 2017 to 20 percent by 2031, the government’s establishment and implementation of such a program is a timely imperative. However, as has been the recurrent theme with many government initiatives in Bangladesh, the scheme’s efficacy remains unassured in the absence of robust measures to combat corruption and mismanagement.
However, in the grand tapestry of socioeconomic development, this universal pension scheme represents a pivotal thread. It’s a thread woven with aspirations for a more inclusive and secure future, guided by lessons from global experiences and the pursuit of sound governance. As this scheme unfolds, it has the potential to transform not only individual lives but also the economic landscape of the nation— a climax in the journey towards a more prosperous and equitable society. This pension scheme is not just a financial endeavour; it’s a symphony of social justice, a bridge to a brighter future, and a testament to a government’s commitment to the welfare of its citizens.
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