Different types of pension systems are being introduced in countries around the world
Different types of pension systems are being introduced in countries around the world. In the 2008 election manifesto, Awami League President Sheikh Hasina promised to introduce universal pension system in Bangladesh. Finally it is going to see the face of light. The Finance Department of the Ministry of Finance has already prepared a strategy paper and a draft law of the National Pension Authority.
Although late, the pension for all, that is, universal pension system is going to be introduced in Bangladesh. A month and a half ago, the Finance Department of the Ministry of Finance prepared a strategy paper in this regard and submitted it to Prime Minister Sheikh Hasina. The finance department also drafted a law on the National Pension Authority last week.
The promise made by Awami League President Sheikh Hasina in the 2008 election manifesto to introduce universal pension system is going to see the light of day. The strategy paper states, “This is the real time to start a universal pension system as Bangladesh currently has more working people than older people.”
The National Pension System (NPS) was introduced in neighboring India on January 1, 2004. Initially it was introduced only for the employees of the central government except the military department. Customers and employers or the government contribute a certain amount to the NPS, which is then invested in the for-profit sector. It provides for 60 per cent cash withdrawal at the age of 70. The remaining 40 percent of the money is created to pay the pension.
In China, 60 percent of the population is working. There are three types of pensions in the country. The country has an urban pension system (UPS) for urban workers, a civil and public service pension system (CPSPS) for government and semi-government employees, and a rural pension system (RPS) for those employed in rural private sector.
The country has four types of pension system – state, professional, private and unfunded. The state pension also has three components namely state retirement allowance, supplementary pension and pension credit. Under the state retirement allowance, those with an annual income of more than হাজার 9,500 have to pay a compulsory subscription to national insurance. Supplementary pension is given to those whose income is below the state-fixed lower income limit. This is optional. And the pension credit is for those over 60 who have a low income.