The Universal Pension Scheme (UPS) 2023, inaugurated by the prime minister on August 17, is a pathway to self-sustained retirement for citizens. With this, even individuals with modest incomes are going to have the opportunity to prepare for a self-sustained retirement within their financial capabilities.
A distinctive sub-scheme named 'Samata' covers this majority, tailoring pension contributions according to their earnings. Aspiring recipients can effortlessly enrol in this universal pension scheme, provided they meet the fundamental criteria.
Pension schemes could potentially give people a scope to secure their future. The low income citizens of Bangladesh can also benefit from the UPS. The Samata scheme has been especially designed to cater to the needs of the low income people of Bangladesh.
The subscription rate is designed for individuals residing below the poverty line. Only those with an income not exceeding Tk 60,000 per annum are eligible for the Samata scheme. Half of their stipulated contribution is subsidised by the government, while they bear the remaining half.
Let's delve into the process, how the low income people in Bangladesh can enrol in the Samata scheme.
Primary terms and conditions
Each and every skilled individual across the nation has the opportunity to engage in the UPS, a platform of financial security. However, this privilege comes with the prerequisite of meeting fundamental requirements.
The inclusive provisions outlined in the Public Pension Management Act of 2023 are detailed below:
- Eligibility spans individuals aged 18 to 50, verified through their National Identity Card (NID). Individuals over 50 can participate, under special consideration, for a decade, becoming eligible for lifelong monthly pensions post 10 years of consistent contributions.
- Commencing the scheme mandates online registration with accurate details. Beneficiaries of existing social security programmes can transition into this scheme after their current benefits cease.
- A dedicated account, assigned to each registrant, will manage all aspects of their scheme-related finances.
- Contingencies in the pensioner's lifespan are accounted for. In case of their demise, the recipient's chosen nominee will later receive the monthly pension payments. The duration for which the nominee will be entitled to receive this pension extends up to the principal pensioner's age of 75 years. For instance, if the principal pensioner passes away at the age of 68, the nominee will continue to receive the monthly pensions for the subsequent seven years.
- The scheme registrant may pass away while actively contributing before the pension scheme reaches its full maturity. In this scenario, the designated nominee will receive the entirety of the funds deposited along with accrued profits. It's worth noting that the contribution period for each tier of the pension scheme spans a minimum of 10 years.
- The government services accessed via Mobile Financial Services (MFS) incur a cash-out charge of 0.70 per cent, or Tk 7 per thousand. It extends to this scheme as well, as per a Finance Ministry circular issued on August 16.
Registration process for Samata
Access to the pension scheme is channelled through the Upension website, commencing with the 'Pensioner Registration' menu.
Consent to basic terms
A trio of pivotal terms and conditions must be agreed upon initially:
- The applicant must not be employed by governmental or semi-governmental bodies.
- The candidate must not be enjoying privileges from any governmental or autonomous institution.
- The candidate must not be receiving benefits from any social security programme.
The registration page can be accessed by clicking on the 'I agree' button below. Without obtaining this consent, the application cannot be initiated. In the event that any exception to the aforementioned conditions is identified subsequent to the commencement of subscription, the complete registration will be annulled.
Additionally, individuals who provide incorrect information will not be eligible for a refund of any funds deposited as subscriptions.
Scheme category and identification
This marks the first page of registration, wherein the category 'Person in Low Income' must be chosen from the provided options. Subsequently, a 17, 13, or 10-digit NID number, along with the date of birth, will be required to verify identity. A regularly used mobile number and email address need to be provided for communication purposes.
Upon entering the details, an OTP or one-time password will be dispatched to both the email address and mobile number for verification. This OTP is required to be entered in the designated area of the online form. Finally, the captcha below needs to be completed without errors before submission, leading to the commencement of the next section.
Personal details
Given that the NID number is provided on the preceding page, the candidate will encounter their personal details, which have been pre-filled. These details encompass the candidate's NID number, photograph, full name in Bengali and English, father and mother's names, as well as permanent and current addresses.
In the case of District, Upazila and Division, candidates must select their respective locations from the dropdown lists.
Determining occupation
In this section, low-income workers are required to select their occupation from the range of occupations mentioned in the list. Within the annual income space, the total income for 12 months must be entered.
Determining subscription
In this pivotal phase, scheme beneficiaries are to specify the instalment of subscription they wish to undertake. Candidates have the flexibility to choose from three modes of contribution: Monthly, Quarterly, and Annually.
Bank details
The contributor's bank details are required to be entered here. These account details must align precisely with the information provided while opening the account at the corresponding bank. This entails no discrepancies in the account holder's name, account number, or account type, whether it's savings or current.
Each bank is assigned a unique nine-digit routing number, which needs to be inserted in the space adjacent to the routing number. For those unfamiliar with the number, a 'Don’t know the Routing Number' button is available next to it.
Clicking this button will generate a small box containing two separate dropdown lists: one for the bank and another for its branch. The appropriate bank and branch should be selected from these lists. Candidates can also choose a branch near them. As soon as the information is entered, the box will disappear and the corresponding cell next to the routing number will be filled.
Nominee section
This is the part of the nominee, responsible for receiving the deposited amount as pension or contribution along with the profit in the absence of the pensioner or contributor. Initially, the nominee's NID number and date of birth will be required, followed by clicking the 'Add Nominee' section below.
Consequently, the remaining portion will include fields for the nominee's mobile number, their relationship with the candidate, and the proportion of the candidate's share they will receive. For a single nominee, the candidate's total amount is required to be entered.
If necessary, candidates can add multiple nominees by clicking the 'Add more nominee' button. Each nominee's respective share must then be specified.
Overall verification
All information provided thus far will be consolidated in this final section of the application. Registration will be deemed complete upon thorough verification of the accuracy of the details and subsequent submission. After submitting the application successfully, the applicant can download it and preserve it for future reference and potential use.
How to subscribe to Samata
The information regarding instalments will be dispatched to the applicant’s mobile number and email address provided during the online registration.
Each instalment must be punctually deposited into the National Pension Authority's designated bank account.
In the event of failure to meet the deadline, a grace period of up to one month will be granted to pay the instalment without incurring penalties.
If the instalment remains unpaid beyond this supplementary period, a penalty will be imposed at a rate of 1 per cent for each consecutive day. Consistent failure to fulfil subscription obligations will lead to the registrant's scheme account being deactivated.
