Private pension scheme on cards

The government planning to roll out a private pension scheme to cater to the vast majority of the citizens who are out of any such scheme, a top finance ministry official said.
As the current pension arrangements in the country are largely confined to the people in government and semi-government services, the planned private pension scheme would be open for all with a broader outlook.
The opportunity would shield different vulnerable segments in the society, including professionals, private service holders, non-resident Bangladeshis or businessmen, in their old age, revealed a concept paper prepared by the finance ministry.
Besides, operators a new horizon of business opportunity would open up in the private sector as both local and foreign investors would be allowed to enter the new pension market in the country.
‘We are keen to roll out a private voluntary pension scheme for all citizens and establish a pension market in the economy,’ a senior finance official told New Age on Sunday.
While the country has an estimated 5.5 crore workforce, only about 10 per cent of them now enjoy pension facility, according to a document of the ministry.
Officials concerned in the finance ministry said the move involves huge preparations in the areas of legislative, regulatory and institutional. The ministry has decided in principle to take technical cooperation from the World Bank in rolling out the facility.
‘The WB is expected to come forward with a concept on introducing the voluntary pension scheme for all citizens,’ another finance ministry official said.
He said a project would be undertaken soon to develop the structure and infrastructure of the pension market. The proposed project will adopt a phase wise approach and provide support for a pilot scheme to be implemented on a small scale in a sector or group to be determined during the project preparation, he added.
Earlier, finance minister AMA Muhith gave go-ahead to introduce pension market for private sector people and open up a new business area for pension economy, sources said.