Universal Pension Scheme Faces Uncertain Future Amid Political Turmoil

The universal pension scheme has faced criticism since its inception. When former Prime Minister Sheikh Hasina announced the launch of the program on August 17, 2023, many viewed it as a means for the government to increase its funds. Additionally, the scheme was criticized for fostering discrimination. For instance, government officials and employees were excluded from the scheme, while university teachers were included. Following over a month of protests by public university teachers, officials, and employees demanding the cancellation of the scheme, the previous government was forced to abandon it.

The government had described this initiative as a landmark step towards public welfare in Bangladesh's history, one that would be regarded as a certificate of retirement financial freedom for all citizens. According to Sheikh Hasina's development philosophy, the goal is to transform Bangladesh into a middle-income country by 2031 and a happy, prosperous, developed, and smart nation by 2041. The universal pension scheme was intended to contribute to ensuring the social and financial security of the elderly population in the pursuit of these goals.

Since its official launch on August 17 last year, the four pension schemes—'Pragati' for private sector employees, 'Suraksha' for the self-employed, 'Prabasi' for expatriate Bangladeshis, and 'Samata' for low-income groups—have been open to all. As of July 8, the total number of subscribers across these schemes stood at 352,000. However, in the 49 days leading up to last Tuesday (August 27), only 19,959 new subscribers joined the program. Following the popular uprising on August 5, the enrollment rate dropped significantly. By August 27, the total number of subscribers reached 371,969, with deposits amounting to just over 120.31 crore taka.

According to a report published Saturday, September 1, the public pension program is currently at a standstill. The ongoing political unrest in the country over the past month has negatively impacted the program's operations. Launched in August last year without a proper feasibility study, the program has now stalled.

Many are increasingly concerned about the future of the public pension program. Golam Mostafa, a member of the National Pension Authority, addressed these concerns by telling the media that the project is still in its very early stages. He noted that, given the current changing situation, other issues are taking priority. While the program's continuation is possible, it will take time, as decisions from the new government will be necessary for its implementation.

There is a pressing need for an immediate solution to the universal pension program. Participants, including many elderly and low-income individuals, are anxious about the program's future. Without prompt resolution, these vulnerable groups could face severe financial hardship. It's crucial to address their concerns and provide reassurance to those who have already enrolled in the program.