On August 17, the Universal Pension Scheme (UPS) 2023 was officially launched by Prime Minister Sheikh Hasina. Professionals from diverse groups have been brought under this initiative.
Those who are self-employed or work in the informal sector, such as farmers, fishermen, blacksmiths, potters, weavers, and labourers, have also been thoughtfully included. Even a distinct package called “Surokkha” has been established for their inclusion under the UPS. A separate contribution rate for pension has been devised, reflecting the economic contributions of this demographic to the nation.
This article discusses the registration process for self-employed and non-institutionalized workers in the UPS. Let's elucidate the procedure along with the regulations governing the scheme.
General rules of UPS
The Universal Pension Management Act of 2023 outlines prerequisites for acquiring pension benefits for individuals across various income segments. These prerequisites serve as fundamental criteria for attaining pensions for professionals from all groups.
- The scheme is accessible to those aged between 18 and 50. This age bracket is verified using the National Identity Card (NID). Those exceeding the age of 50 can participate for a maximum of 10 years, subject to special consideration. Following this period of contribution, they become eligible for lifelong pensions.
- Participation in the scheme is exclusively through online registration. Individuals currently benefiting from the social security scheme can also join, provided they withdraw from the existing scheme.
- Upon launching the scheme, a dedicated account is established in the name of each registrant. This account documents all aspects related to their contributions, tenure, and pension.
- In cases where the pension recipient passes away, their nominee will continue to receive monthly pension payments. These payments endure until the principal pensioner's age of 75. For example, if the pensioner passes away at 70, their nominee will receive monthly pensions for the subsequent 5 years.
- The subscriber to the scheme might pass away during the period of contribution towards the pension. In such a scenario, the subscription amount deposited, along with any accrued profits, will be disbursed to the designated nominee. Notably, the minimum contribution term for each scheme is 10 years. Contributions made under the scheme are treated as investments in the registrant's name and are tax-exempt. This implies that pension income drawn later is not subject to income tax.
- A cash out charge of 0.70 per cent is applicable for utilising government services via mobile financial services (MFS) under this scheme. Consequently, subscribers will incur a service charge of Tk 7 per thousand when subscribing through MFS. This uniform service charge rule was instituted on August 16, akin to other government services.
Surokkha registration process
To register for the pension scheme, individuals from diverse backgrounds need to visit the Upension website. Initiating the registration process involves clicking on "Pensioner Registration" at the upper right corner of the site. The following is a step-by-step breakdown of the procedure:
Consent to basic terms
The scheme's registration requires adherence to specific qualifying criteria outlined in the aforementioned general rules. Commencement of registration is contingent upon acceptance of these conditions.
- The applicant cannot hold a position as an officer or employee within any government, semi-government, or autonomous entity.
- No form of benefit can be received from government or autonomous institutions.
- Exclusion from social security programme benefits.
To proceed, click the 'I agree' button located beneath the terms and conditions. Failure to provide accurate information will result in application cancellation. Subscription deposits are non-refundable in case of misinformation during the subscription period.
Selection of scheme category
Self-employed/informal sector workers must choose the Self-Employed/Non-Institutionalized Workers category from the provided options.
Identity verification follows, requiring a 10, 13, or 17-digit NID number and birth date entry. Contact details including mobile number and email are essential.
An OTP (One-Time Password) will be sent to verify the provided details. This OTP should be correctly entered in the designated space along with the captcha to proceed.
Submission of personal information
Personal data will auto-populate based on the previously entered NID number. This includes NID number, photo, full name in Bengali and English, parents' names, and both permanent and current addresses.
District, upazila, and department names are to be selected from separate drop-down lists.
Providing occupational information
Self-employed/non-institutionalized workers will appropriately indicate their skills from the provided professions. Annual earnings should be entered in numerical format.
Determining scheme contributions
This section necessitates specifying subscription instalments and amounts. Candidates can select monthly, quarterly, or yearly payment modes based on convenience.
Subscription payment method
The name and account number of the bank account holder, from whose bank account the subscription will be paid, should be provided. Whether the account is savings or current needs to be specified.
Following that, the 9-digit routing number of the respective bank must be entered in the designated routing number field.
If the applicant is unsure about this routing number, there is an option to click on the 'Don’t know the Routing Number' button located next to it. This action will trigger the appearance of a small box prompting the entry of the bank's name and its branch.
The bank's name where the above-mentioned account number was opened, along with its branch, needs to be selected out of the drop-down lists here. The chosen branch can be any branch of the bank that is closest to the candidate. Upon correct entry of information, the routing number will be automatically updated.
Nominee information
It is now time to provide the nominee's particulars. The nominee's NID number and date of birth are required, followed by the selection of 'Add Nominee'. The nominee's mobile number, their relationship with the candidate, and the designated share are to be included.
In the case of multiple nominees, selecting 'Add More Nominee' permits allocation of distinct shares.
Verification of information
Finally, all the background information will be presented at a glance. Each of these elements needs to be thoroughly reviewed, marking the concluding step of the registration process. If necessary, the online application, once successfully submitted, can be downloaded and retained.
How to subscribe for Surokkha
Registrants receive information related to their subscription via the provided mobile number and email address. Each instalment should be timely sent to the National Pension Authority's bank account.
If a subscriber fails to meet the payment deadline, they have a grace period of one month to make the payment without incurring a penalty. After this grace period, a penalty of 1 per cent per day is imposed, and the scheme account cannot remain active.
Summing up
By enrolling in the Surokkha scheme, self-employed and non-institutionalised workers can secure their financial future. This sizable workforce, operating beyond traditional governmental and private institutions, contributes significantly to the nation's prosperity.
This government-backed safety net bolsters the foundation of the economy, providing a dignified old age for these workers. Additionally, substantial human resource development can be anticipated in the upcoming years.
