State-owned firms' employees without govt pension to come under 'Pragati' scheme

Employees of state-owned companies who are not covered by the government's conventional pension system will be brought under the 'Pragati' scheme of the Universal Pension Scheme, according to the National Pension Authority.

The authority also approved proposals to introduce an Islamic pension scheme, raise the age limit for nominees to receive benefits after a pensioner's death, and provide a return of 11.68% to 11.72% for FY26.

The decisions were taken at the fourth meeting of the National Pension Authority's board of directors at the Secretariat today (17 September), chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

Briefing reporters after the meeting, Executive Chairman Dr Md Suratuzzaman said employees of state-owned companies who are not directly covered by the government pension system would be eligible for the Pragati scheme.

He said their retirement benefits currently depend on their respective companies' service rules and internal arrangements, unlike government civil servants who receive pensions under a separate state system.

The list of eligible companies and the implementation process will be determined later, he added.

The board also approved a return of 11.68% to 11.72% on the Universal Pension Fund for FY26, based on its investment income and expenditure. The maximum return offered in FY25 was 11.61%.

The authority also approved the introduction of an Islamic pension scheme. The Asian Development Bank and local consultants are working on the framework, while separate regulations will be formulated for the scheme.

A proposal to allow pension benefits from the age of 55 is also under review. Suratuzzaman said actuarial advice and pension systems in other countries would be considered before making a final decision.

The board also decided to extend the age limit for a pensioner's spouse or nominee to receive benefits after the pensioner's death from 75 to 80 years.

Several other proposals remain under review, including allowing participants to withdraw their full contributions after five years, taking loans from the pension fund and introducing health insurance alongside the pension scheme.

The authority is also considering linking pension returns to inflation once the fund becomes larger.

To increase participation among expatriate Bangladeshis, the government plans to inform workers about the scheme when they leave the country. The Expatriates' Welfare and Overseas Employment Ministry will work on the initiative.

Meanwhile, the one-time fee for mobile financial service providers participating in the pension scheme has been raised from Tk15 to Tk25. The pension fund will also be audited by a private chartered accountancy firm.