Govt pushes to include bank employees in universal pension's Progoti scheme

The government has directed efforts to be intensified to bring officials and employees of scheduled banks under the "Progoti Scheme" of the Universal Pension Scheme to ensure post-retirement financial security for private sector workers.

The Ministry of Finance confirmed the information in a press release stating that the directive came at a review meeting held today (3 June) at the Finance Building in the Bangladesh Secretariat, where representatives of Bangladesh Bank and managing directors of all scheduled banks participated.

The meeting was chaired by Nazma Mobarek, secretary of the Financial Institutions Division.

She instructed managing directors of banks to take necessary measures to enrol their institutions' officials and employees under the Progoti Scheme.

A keynote presentation was delivered by National Pension Authority Executive Chairman Dr Md Surujjaman.

He said a large portion of the country's approximately 18 million registered private sector workers and employees remain outside any post-retirement financial security framework.

"While government employees enjoy pension benefits, no such institutional arrangement existed for private sector workers for a long time," he said.

According to him, the Progoti Scheme under the Universal Pension Scheme, launched in 2023, could serve as an effective and sustainable retirement protection system for private sector employees.

The meeting also discussed several proposals aimed at making the scheme more attractive, including introducing a Shariah-based pension scheme, considering lifetime pension benefits for nominees and bringing outsourcing employees under the scheme.

A presentation by the National Pension Authority said the government's Election Manifesto 2026 pledged to establish a pension fund to ensure old-age financial security for private sector workers, with the Universal Pension Scheme being one of the key initiatives toward that goal.

Officials said the Progoti Scheme was specifically designed for owners and employees of private institutions.

Under the scheme, employees will contribute 50% of the monthly subscription while the remaining 50% will be paid by the institution.

Monthly contributions under the scheme range from Tk1,000 to Tk15,000.

Subscribers will receive monthly pensions for life after retirement. Contributions will qualify for income tax rebates, while pension income will remain tax-free.

In addition, subscribers will be allowed to withdraw up to 30% of the accumulated fund as a one-time gratuity after turning 60.

The entire investment will remain under state guarantee.

According to information presented at the meeting, a total of 377,930 people had registered under the four universal pension schemes as of 30 May.

Total deposits under the schemes stood at nearly Tk260 crore, while overall investments reached Tk286 crore.

The National Pension Authority has already signed memorandums of understanding with 48 banks and financial institutions.

Among them, 24 banks are actively conducting pension contribution collection and payment operations.

The meeting decided that Bangladesh Bank and scheduled banks would take necessary measures to include their officials and employees under the Progoti Scheme.

The government has set a target of bringing at least one member from each of the country's nearly 40 million families under a universal pension scheme by 2030.

To achieve this target, banks have been asked to establish separate pension desks at all branches, display promotional banners, integrate the pension scheme into their marketing activities and bring all employees of private banks under the Progoti Scheme.

The session was moderated by National Pension Authority Assistant General Manager Ayesha Haque.