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SOCIAL PENSION SCHEME

A guide to the great outdoors

Presented by:

Saki Rezwana

BSPAN

Bangladesh

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Social Protection in Bangladesh

In Bangladesh, social protection is viewed as a multi-faceted strategy aimed at reducing poverty, vulnerability, and marginalization by providing individuals and families with various forms of support and safety nets.

This approach recognizes that poverty and vulnerability aren't just about income levels, but also encompass various factors like health, education, social exclusion, and exposure to shocks.

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Universal Pension Scheme,Bangladesh

On January 31, 2023, the National Parliament of Bangladesh passed the "Universal Pension Management Act, 2023," which was subsequently ratified by the President of Bangladesh.

Following this legislative milestone, on August 13, 2023, an official notification was issued to announce the implementation of the Universal Pension Scheme.

Four days later, on August 17, 2023, Prime Minister Sheikh Hasina officially inaugurated the Universal Pension Scheme, marking a significant step towards ensuring financial security for retirees across the nation.

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UNIVERSAL PENSION SCHEME (UPS)

This Universal Pension Scheme is a system where senior citizens will receive a stipend to meet daily expenses during the elderly period.

Eligibility for the Scheme

All citizens aged between 18 and 50 based on their National Identity (NID) Card. Expatriate Bangladeshi will also enroll in this scheme.
Employees of Government, semi-government, or autonomous organizations in Bangladesh will not be covered.
Minimum maturity year 10 years and maximum 42 years.

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UNIVERSAL PENSION SCHEME

PROBASH

Bangladeshi citizens - working abroad

PROGOTI

In the scheme,

private company employees pay 50%, and the institution covers the other 50%.

SUROKKHA

People employed in the informal sector or involved in self-employment, including farmers, rickshaw pullers, laborers, potters, and fishermen.

SAMATA

Low-income individuals below the poverty line,

Government Will Pay 500/- BDT and Individuals will pay 500/-

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Probash (For Expatriate Bangladeshi Citizens)

Minimum Contribution Rate (Monthly)	Minimum Pension Rate (after 10 years, monthly)	Maximum Contribution Rate (monthly)	Maximum Pension Rate (after 42 years, monthly)
2,000/-	3,060/-	10,000/-	3,44,655/-

Eligibility:	Open to Bangladeshi citizens working or staying abroad.
Contributions	Can be made in foreign currency while abroad and switched to local currency upon return.
Contribution Amounts:	Monthly subscription amounts are 2000 taka, 5000 taka, 7500 taka, and 10000 taka
Scheme Changes	Allows switching schemes upon returning home
Payout Currency	Pensions are paid out in local currency.
Family Coverage	Expatriates can open the scheme for their family members residing in Bangladesh.

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PROGOTI( FOR PRIVATE EMPLOYEES/INSTITUTIONS)

Eligibility	Individuals working in private institutions or owners of such institutions can participate
Contribution Options	Employer-employee split contribution (50% each). Individual contribution by the employee (if the institution doesn't participate).
Company Registration	Required for institutional participation.
Monthly Subscription Amounts	2000 taka, 3000 taka, 5000 taka and 10,000 taka.

Condition for Eligible	Minimum Contribution Rate (Monthly)	Minimum Pension Rate (after 10 years, monthly)	Maximum Contribution Rate (monthly)	Maximum Pension Rate (after 42 years, monthly)
private company employees pay 50%, and the institution covers the other 50%.	2,000/-	3,060/-	10,000/-	3,44,655/-

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3.SHUROKKHA: SELF-EMPLOYED OR INFORMAL WORKERS

Eligibility Individuals	working in the informal sector or self-employed (like homebased workers, farmers, rickshaw pullers, laborers, blacksmiths, potters, fishermen, weavers and all those engaged in informal works , etc.).
Monthly Contribution Amounts	1000 taka, 2000 taka, 3000 taka and 5000 taka.

Minimum Contribution Rate (Monthly)	Minimum Pension Rate (after 10 years, monthly)	Maximum Contribution Rate (monthly)	Maximum Pension Rate (after 42 years, monthly)
1000/-	1530/-	5000/-	1,72,327/-

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SHOMOTA: LOW-INCOME PERSON

Eligibility	Targeted towards low-income individuals living below the poverty line in Bangladesh, with current income limits set by the Bangladesh Bureau of Statistics.
Income Limit	The current income limit is less than 60,000 taka per annum, without requiring evidence to support the annual income.
Subscription Rates	Participants can join by paying a monthly subscription amount of 1000 taka.
Government Grant	Out of the 1000 taka subscription, the subscriber pays 500 taka, and the government provides the remaining 500 taka as a grant.
Support for Self-Employed	Designed specifically for self-employed individuals who are within the defined income limits.

Amount payable by the individual.	Amount payable to Govt.	Minimum Pension Rate (After 10 years, Monthly)	Maximum Pension Rate (after 42 years, monthly)
500/-	500/-	1,530/-	34,465/-

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How to Deposit the Instalment?

Payment Frequency: Monthly, Quarterly, or Annually.

Notifications & Penalties

SMS alerts for deposit confirmation.
Non-payment notifications with fine details.

Institutions and employees deposit together if participating

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Features of UPS

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Update of UPS 2024

Participation	As of March 2, 2024, only around 21,000 people have registered with a total deposit of 32.63 crore taka (approximately $3.8 million). This falls short of the government's target of enrolling 10 crore people (100 million)

New scheme	The government has introduced a new scheme named "Prottoy" under the Universal Pension Scheme (UPS) for newly recruited employees of autonomous, state-owned, statutory, and their subordinate bodies. this scheme will be effective from July 1, 2024.

Revise UPS	under the supervision of Ministry of Finance, in 2024 the UPS will be revised to for NSSS phase II, which is dedicated for the social protection of the people of Bangladesh.

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Role of BSPAN

�In recognition of potential shortcomings within the social protection schemes, the Bangladesh Social Protection Advocacy Network (BSPAN) identified ten key areas for improvement during the revision process. Their expertise was valued by the Bangladesh Government, which included BSPAN representatives on the advisory committee comprised of civil society and trade union organizations. This inclusion signifies the importance placed on BSPAN's insights for strengthening these social programs.

BSPAN is Bangladesh Social Protection Advocacy Network was established is 3 November, 2017.

It’s working with TU, NGOs on Social Protection and Advocacy since then.