Govt targets bringing one member from every family under pension scheme by 2030

Star Business Report

Finance Minister Amir Khosru Mahmud Chowdhury directed authorities to work towards bringing at least one member from each of the country’s nearly 4 crore families under the Universal Pension Scheme (UPS) by 2030.

The directive came at a high-level meeting held at the finance ministry today to review the progress, challenges, and future roadmap of the pension scheme.

During the meeting, officials said a total of 377,545 people had enrolled in the four existing schemes — Probash, Progoti, Surokkha, and Somota — as of April 30 this year.

The pension fund has so far accumulated Tk 256 crore in contributions, while total investments, including profits, have reached Tk 280 crore, according to a press release.

The previous Awami League government introduced the UPS in January 2022 with a view to bringing the country’s growing elderly population under a social security system.

Khosru stressed the need to further expand the pension scheme, particularly among people working in the informal sector, who account for nearly 85 percent of the employed workforce.

They remain without any retirement protection, he said.

Officials at the meeting also highlighted concerns over the country’s growing ageing population and the increasing dependency ratio in the coming decades, the press release said.

The meeting discussed several proposals aimed at making the scheme more attractive and inclusive, including the introduction of a Shariah-based pension scheme, lifetime pension benefits for nominees, and the inclusion of outsourced workers under the Progoti scheme.

Officials also informed the meeting that the Asian Development Bank (ADB) has pledged $100 million in concessional loans for a project to strengthen the UPS.

Currently, contributions can be deposited through 45 banks and financial institutions, as well as mobile financial services such as bKash and Nagad. Registration services are also being offered through Union Digital Centres.

The finance minister also emphasised the importance of strengthening public confidence in the pension system through wider awareness campaigns, enhanced cybersecurity measures, and the recruitment of skilled professionals.