The population of Bangladesh will be brought under a pension system, the Finance Minister AMA Muhith said on Thursday, while declaring the national budget for fiscal year 2018-2019.

“We want to introduce a universal pension scheme for all working people, engaged in private sector, both formal and non-formal,” said the minister.
He went on to say that pensioners of the public sector constitute the smallest portion of the elderly population in the country.
Currently, only a total of 7-8 lakh families of retired government employees and former members of several private organisations get pensions.
It is imperative to bring about equity and consistency in pensions awarded to public and private sector employees, he observed.
A total of 35 lakh elderly poor people, in addition to government pensioners, are getting old age allowance of Tk. 400 per month, which represent only a quarter of the total elderly population, according to latest statistics.
Terming the amount ‘insufficient’, the minister prophesied that following the normal demographic trend, the proportion of elderly population will increase in Bangladesh like other developed countries.
He also acknowledged that it would be difficult to support a large number of elderly people through state funds only.
Under the proposed arrangement, an employee will subscribe a specific amount to the pension fund, having registered his name in the government-administered pension scheme.
The appointing authority will also deposit a specific amount into the employee’s pension account.
“In case of ultra-poor workers, the government will deposit a specific amount into the pension fund,” the minister said.
The minister, however, acknowledged that the introduction of universal pension scheme calls for fundamental structural reforms, which will take time and entail huge cost.