Home ›› 21 Mar 2022 ›› Editorial
For the first time in Bangladesh's history, the government has decided to introduce a universal pension scheme so that people from all walks of life do not have to struggle for money in old age. A few days ago, the prime minister directed formulation of the necessary structures, rules, regulations, and laws in this regard. The issue has received a positive response from the general public.
The finance minister clarified the matter in a press conference and said that any working citizen between 18 and 50 and expatriate Bangladeshi workers would be brought under the universal pension scheme. Not only at the individual level, but also the organization itself can come under it. However, people working in government and semi-government organizations will not be under its coverage at the moment. The rule, in this case, is to first open a pension account in the bank with a national identity card. Initially, anyone could do it. But after a while, it will be made mandatory with some more rules. A "National Pension Authority" will be formed to implement the whole matter.
To qualify for the pension scheme, everyone has to deposit a certain amount into the pension account at the bank every month. The monthly subscription rate will be fixed. The authorities will determine the subscription rate for the organization outside the individual. People living in the country have to pay a monthly subscription, but in the case of expatriates, they have to pay three months' subscription at a time. The government will pay the same amount to those who pay on a monthly or quarterly basis. The funds thus raised will be invested elsewhere. Professionals will also get a large part of the profit from there. This way, he will be eligible to get a monthly pension only if he contributes for ten consecutive years.
If the beneficiaries cannot pay the subscription in any month, the account will be temporarily suspended. If the arrears are deposited along with the delay fee, the account will be activated again. However, before the end of the year, the account holder must deposit the prescribed amount in the bank. If someone changes jobs or places, his account must be kept open. Otherwise, he will not get the pension benefit. The policy cannot be taken more than once. Pensioners will be given a lifetime pension. Income from the pension will be free from any tax. However, one may borrow up to 50 per cent of the deposited funds, which must be returned with interest.
Earlier, former Finance Minister Abul Maal Abdul Muhith had spoken about pension for all in the 2016-17 fiscal year budget. Then the finance department also prepared a concept paper. He also highlighted the importance of including this concept for the subsequent two budgets. According to the finance department, the extended part of that concept paper is the strategy paper for this time.
The finance minister said it was important to introduce a universal pension scheme to provide security to the elderly, considering their life expectancy and dependency rate. In this way, the elderly population will be brought under a sustainable and well-organized social security structure. In her 2008 election manifesto, Prime Minister Sheikh Hasina promised to provide pensions to all the people. In line with that commitment, universal pension-management activities have been undertaken.
The number of older people in our society will gradually increase. In Bangladesh, a person is considered old when he is over 65 years of age. At present, the average life expectancy of the people of Bangladesh is 73 years. This is expected to be 80 years by 2050 and 85 years by 2075, said the finance minister. He said that this means that a working person will live an average of 20 years after retirement in the next three decades. He added that the current rate of senior citizens in the country is 7.7 per cent of the population, which will be 24 per cent in 2050 and 48 per cent in 2075.
According to statistics, if the number of senior citizens increases, this decision should be implemented immediately. Otherwise, in a country with such a large population, the government will face serious problems regarding the plight of the elderly. It can be said that such initiatives by the government in time bear the mark of foresight. However, like many things in the past, it has to be implemented without delay. If it is implemented through a realistic plan, it will provide social security to the people and carry the identity of a developed social system.
How are the old people faring now? Jamal Hossain, a senior citizen, in response to a question on how they are living in retirement or income-less conditions, said, "I have taken a private job. I had been pretty well off. I have three children who have all passed the their Masters exam. All of them are working at present. At the time of my retirement, I got some money from the company. The money saved was hardly enough. All the money was spent on bringing up the children. Now my wife and I live in our son's house. I bought a savings certificate for a small amount of money. We can't afford our expenses with what we get from there. The boys do help out financially from time to time, but not regularly. There are still problems. I can't go out or shop for necessities. I have heard that the government is making an arrangement for pensions. But I am quite worried about the fact that those of us who are retired may not be able to pay monthly. How can we come under this pension scheme? A large number of retired people continue to depend on their children. What will happen to them?"
People like Jamal Hossain do not get old age allowance and are not solvent. They are not in a position to deposit the monthly amount. On the contrary they need money and can't get them from their children or any other source. What will happen to them? Again, many are older than 50. Why did the government not think about them? If they live for another 30 years, this benefit will be useful. But the government's plan did not say anything about them. That is why it has been said that the government should think more about this. The government can especially focus on bringing those who can pay monthly dues under the pension scheme.
The social structure of our country is such that parents work for their children all their lives, bear all their expenses, and do not keep anything for themselves. When they do not have income at the old age, and do not have savings, they become a burden to their children. In such a scenario, many children do not take proper care of their parents or pay their expenses. Then they live a tough life. So this government plan is in demand at this time, which is urgent to implement.
A closer look reveals that our society is changing at a fast pace. Joint families are splitting up and nuclear families have become the norm. However, due to increasing cost or lack of space or lack of care, etc., many elderly parents cannot stay in these single-family homes. Either they are living alone, or they are living in an old age home. This is increasing their expenses. They also have to bear costs for medical treatment and medicine. It has become very difficult for them to meet these costs. So the problems of older people have already increased a lot. Will the government keep these elderly people in mind? Many older people have died the last two years due to Covid-19. For many, expenses have increased. But they still did not come under social security, even though they needed it. These people can still be given financial and medical assistance.
The government has fixed the age limit for the universal pension at 18–50 years. This has led to such problems. How is it possible to solve these problems? In what way will these directionless people find their way? How will they solve their problems? The government can consider the issues. This initiative will be more successful if these issues are given due importance.
The writer is a columnist. She can be contacted at [email protected]
