Outline for universal pension scheme in next budget: Muhith

In line with his earlier pledge to introduce pension for private employees, Finance Minister AMA Muhith says he plans to present an outline for it in the next budget.

After presenting the budget for fiscal 2016-17, Muhith told the media that the government hoped to do that before it ends its term in 2019.

The octogenarian minister said on Thursday that an outline for a ‘universal pension scheme’ can be expected in the budget for the year starting Jul 1.

Muhith made the remarks at the launch of a pilot project of the finance ministry, under which retired public servants’ pension will be transferred to their bank accounts directly from the state coffers.

Finance Secretary Mohammad Muslim Chowdhury said the pilot covered 57 retired government employees, who received SMS notifications on their pension wired to their bank accounts on Thursday.

“They will not have to make rounds to the AG office or the bank or anywhere.”

The number of pensioners in Bangladesh stands at around 657,212, said Chowdhury adding that a proposal for a separate pension office has been forwarded to the public administration ministry.

Muhith said: “A reform in the pension system was made in 1983. And what has been done today is a milestone.”

On the concept of the new pensions, he said, “Our philosophy is that all citizens will be covered in a universal pension and we are more or less committed to it. It will happen over a period of time.”

A separate regulatory authority will be required for formal and informal pensions, Chowdhury said.