To enhance the appeal and accessibility of the Universal Pension Scheme, the government is introducing structural reforms that include lifetime spousal pensions, health insurance coverage, personal loan facilities, and early exit options under specific conditions.

The proposed amendments will be reviewed during a meeting of the National Pension Authority Board of Directors on Thursday (September 17), chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

National Pension Authority Executive Chairman Md. Suratuzzaman confirmed that several key policy reform proposals will be presented to the board. Pending approval and necessary regulatory amendments, the new benefits are expected to be implemented within one to two months.

Launched in August 2023 to expand the social safety net for Bangladesh's aging population, the Universal Pension Scheme has seen modest enrollment over the past three years. Low relative returns compared to commercial bank deposits and limited liquidity have been cited as factors affecting public participation. To date, 379,920 citizens have registered across four distinct schemes, contributing a total of Tk 288.52 crore.

Enrollment figures indicate that the Samata scheme—designed for individuals living below the poverty line—holds the highest participation with 287,224 registrants and Tk 56.85 crore in deposits. Conversely, the Probash scheme for expatriates remains the lowest, with 1,171 registered participants (including 97 women) and Tk 11.87 crore in accumulated deposits.

Key Reform Proposals Under Consideration

• Lifetime Spousal Pension: Under current regulations, monthly pension payouts begin at age 60; if the pensioner dies while receiving payouts, their designated nominee receives the monthly amount until the primary account holder would have reached age 75. The new proposal aligns the system with public sector pensions, extending lifetime monthly payouts to the surviving spouse. The board will also evaluate lowering the pension eligibility age from 60 to 55 years.

• Personal Loan Facilities: Although the Universal Pension Act contains provisions allowing subscribers to borrow against accrued deposits, the feature has remained inactive. Under the updated framework, subscribers may access loans against a portion of their principal, with accrued interest credited directly back into their pension accounts.

• Early Exit and Withdrawal Options: To address liquidity concerns, subscribers who become permanently incapacitated—either physically or financially—after contributing for a minimum of five years may be permitted to exit the scheme and withdraw their full accumulated balance.

• Micro-Health Insurance Coverage: A draft plan submitted to the Financial Institutions Division proposes integrating subscribers into a health insurance framework financed through monthly premiums ranging from Tk 10 to Tk 20.

• Shariah-Compliant Scheme: The government is considering establishing a dedicated Shariah-compliant pension track to accommodate citizens seeking interest-free financial structures.

Upon receiving board approval, the National Pension Authority plans to execute rule modifications swiftly to operationalize the new features and boost national registration.