Executive Chairman of the National Pension Authority Dr Md Suratuzzaman -File photo

By Md Jahir Uddin Babur

DHAKA, July 19, 2026 (BSS) - With the aim of establishing a prosperous, poverty-free and welfare-based state, Bangladesh is moving forward towards ensuring the financial security of its senior citizens by implementing a 'universal pension scheme' like the developed countries of the world.

In a recent interview with BSS at his office in the capital, Executive Chairman of the National Pension Authority Dr Md Suratuzzaman said the foundation of a national, contribution-based, inclusive and sustainable pension culture has been established for the first time in Bangladesh through the launch of the universal pension scheme.

He said earlier there was no institutionalised old-age financial security for most of senior people except government employees. 

Currently working citizens of the country, private and informal sector workers and Bangladeshi expatriates are getting the opportunity to join the universal pension scheme through an integrated digital platform, he said.

He added the universal pension scheme has paved the way for the transformation of social security from a conventional welfare-based concept to a contribution-based and sustainable system. 

At the same time, Dr Suratuzzaman said, it will help build long-term savings, financial inclusion and a strong social security framework for future generations.

Highlighting the difference between the universal pension scheme and the conventional pension system of government employees, he said the government pension is non-contributory and applicable only to government employees. 

On the other hand, he said, universal pension scheme is contributory, where the participant receives monthly pension benefits for life by paying regular contributions.

The NPA executive chairman said currently the number of registrants in the universal pension scheme is about four lakh. 

He said the government is working to bring four crore people under this programme by 2030 with at least one member from one family.

Memorandums of understanding (MoUs) have already been signed with 45 banks and financial institutions to increase registration and participation, Dr Suratuzzaman said.

Besides, he said, the facility of depositing subscription through Bkash, Cash and Teletalk has been introduced. Public awareness activities are also being conducted through Union Digital Centre, NGOs and various media, he said.

According to officials of the National Pension Authority, four separate schemes have been launched under the Universal Pension Scheme considering the needs of people of different classes and professions in the country. 

Those are 'Prabas' scheme for expatriate Bangladeshis, 'Progress' scheme for owners and workers of private enterprises, 'Suraksha' scheme for self-employed or informal sector workers (farmers, labourers, blacksmiths, potters, weavers) and 'Samata' scheme for low-income people.

Among those, if a customer deposits Taka 500 monthly under the Samata scheme, the government ensures a total contribution of Taka 1000 by adding an equal amount of money. Besides, in the Pragati scheme, the employee and the employer jointly pay the contribution.

Referring to the various benefits of the universal pension scheme, Suratuzzaman said the government bears the administrative cost of managing the pension fund. 

As a result, the profit earned from the investment is credited directly to the customer. There are also tax concessions against the monthly contribution and income tax exemption on the pension received. Besides, after the completion of 60 years, maximum 30 percent of the pension fund is available for one-time withdrawal.

About the fund management, he said, according to the Universal Pension Management Act, 2023 and the investment policy approved by the government, the fund money is currently being invested in safe and low-risk sectors, especially government bonds. 

As the size of the fund increases in the future, the area of investment will be further diversified considering the balance of risk and reward, he said.

Dr Suratuzzaman said an initiative has been taken to launch an Islamic pension scheme under the Shariah-based investment system for the devout Muslims of the country. 

For this purpose, an international consultant with the help of Asian Development Bank (ADB) is working on formulation of Shariah compliant framework and implementation strategy, he said.

He said, "The biggest challenge in implementing the universal pension scheme is to increase confidence and awareness among people. Since this is a new and long-term programme, many are still not fully aware of its benefits. We believe that with time, successful implementation, transparency, digital services and regular public awareness activities will strengthen public confidence."

Calling upon the working citizens of the country, the chairman said they should join the universal pension scheme as soon as possible to ensure financial security in old age.