Up to 50% of universal pension deposits can be withdrawn as loans
The loan can be used to pay for family members' medical treatment, house construction or repair, or a child's marriage, he said
Contributors to the Universal Pension Scheme (UPS) can take out loans of up to 50% of the money they have deposited in their fund, said National Pension Authority (NPA) Executive Chairman Kabirul Ezdani Khan on Tuesday.
The loan can be used to pay for family members' medical treatment, house construction or repair, or a child's marriage, he said.
During a meeting organised by the Metropolitan Chamber of Commerce and Industry (MCCI) in Dhaka on the pension scheme, he said an expert committee would be formed to invest the accumulated money safely and profitably.
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The committee will have representatives from the private sector, economists, bankers, members of the Securities and Exchange Commission, academics, and civil servants, he said.
Kabirul Ezdani Khan further said there will be a separate fund for public pension scheme contributions. The contributions will be used under a separate rule, which is being formulated.
In the keynote presentation, he said the authority has targeted investment in treasury bonds and treasury bills, which are considered to be safe and secure investments. "Once a large fund is raised, a committee will be formed to manage the fund and decide where to invest the money."
In the future, when another bridge like the Padma Bridge will be constructed, funds will be allocated for such a large project, he said, adding that every pension fund in the world wants to make safe investments where profits can be guaranteed.
According to Khan, the first step to ensuring the sustainability of the Universal Pension Scheme is to gain the trust of the people. To this end, the National Parliament has passed the Universal Pension Management Act, 2023. A notification has been issued to form the National Pension Authority, which provides an organisational framework for the implementation of the Act.
The Universal Pension scheme will be safe even if the regime changes or the global situation worsens due to a war like the ongoing Russia-Ukraine war, he said.
"There is no reason to doubt its security. It is a scheme of the people, and the government will ensure it remains safe," he said.
MCCI President Saiful Islam and Bangladesh Employers' Federation (BEF) President Ardashir Kabir also spoke at the event.
