Private Bank Employees to Be Brought Under Universal Pension Scheme

The government has directed banks to strengthen efforts to bring all officers and employees of scheduled private banks under the Pragati Scheme of the Universal Pension Scheme, aiming to ensure financial security after retirement.

The directive was issued during a review meeting held at the Finance Building of the Bangladesh Secretariat on Wednesday (June 3).

The meeting was chaired by Nazma Mobarek, Secretary of the Financial Institutions Division under the Ministry of Finance. Representatives from Bangladesh Bank and managing directors (MDs) of various banks attended the meeting. The presentation was delivered by Dr. Md. Suratuzzaman, Executive Chairman of the National Pension Authority (NPA).

According to a Ministry of Finance press release, the banking sector was urged to support the government's target of bringing at least one member from each of the country's 40 million families under the Universal Pension Scheme by 2030.

The meeting decided that bank MDs would take necessary steps to enroll officers and employees of their respective institutions in the Pragati Scheme.

Nazma Mobarek instructed state-owned banks to establish dedicated pension desks at all branches. She also emphasized increasing awareness through banners, promotional activities and employee enrollment initiatives, particularly among private banks.

The current government's election manifesto includes a commitment to ensuring financial security for private-sector workers through a pension system.

Dr. Suratuzzaman said a significant portion of the country's approximately 18 million private-sector workers are not covered by any formal post-retirement financial security system. While government employees receive pensions, private-sector workers have long lacked such institutional protection.

He said the Pragati Scheme, introduced under the Universal Pension Scheme in 2023, can serve as a sustainable retirement security mechanism for private-sector employees. The meeting also discussed proposals to introduce a Shariah-based pension option, provide lifetime pension benefits for nominees and include outsourced employees under the scheme.

According to Dr. Suratuzzaman, Bangladesh Bank and state-owned banks already provide pension facilities. Employees of private banks without pension benefits could receive retirement income by joining the Pragati Scheme.

He added that the number of employees working in private banks exceeds 100,000.

Features of the Pragati Scheme

The Pragati Scheme is designed specifically for owners and employees of private organizations. Under the scheme:

Employees contribute 50% of the monthly installment, while employers contribute the remaining 50%. Monthly contributions range from Tk 1,000 to Tk 15,000. Participants receive a lifetime monthly pension after retirement. Contributions qualify for income tax rebates. Pension income is tax-free. Subscribers can withdraw up to 30% of accumulated savings as a one-time gratuity after reaching 60 years of age. Investments are backed by a state guarantee. Progress of the Universal Pension Scheme

As of May 30, total enrollment across the four pension schemes—Pragati, Prabas, Suraksha and Samata—reached 377,930 members.

Total deposits stood at approximately Tk 260 crore, which increased to Tk 286 crore including investment returns.

The National Pension Authority has signed memorandums of understanding (MoUs) with 48 banks and financial institutions. Of these, 24 banks are actively collecting pension contributions.