Pension is an important issue in the life of every employee that is awarded to him after retiring from the job. Someone retire voluntarily and receive a pension if they have worked for at least five years. This opportunity is introduced in the 2015 pay scale. It was undoubtedly a good decision. Retirement allowance is the only source of income when employees have no income in retirement stage. But even though government employees get regular pension benefits, private employees are deprived in various ways. Even after deducting money from their salary in the name of pension, they have to face various difficulties in getting that pension money later. Even government service holders are harassed and bribed to get the pensions. Recently, a man died without treatment even though he was entitled for pension but, unfortunately, does not get the benefit. This is a very sad news for the society. Sometimes retired government employees are sceptical of getting money from the sale of gratuities and pensions.
Many times the government has been talking about the universal pension system, though it is not implemented yet. Pensions for everyone are still just a dream and a fantasy. I do not see any visible steps or effective progress in this regard. In 2019 budget, it was announced that all government and non-government employees of the country would get a pension. Finance Minister said in his budget speech that all employees would be brought under the ‘universal pension’ system so that everyone in the government and non-government can get more or less pension benefits.
Discrimination between public and private employees should be directed in such a way to ensure social security and reduce inequality. However, both the former and current finance ministers have given importance to this issue. Also, many people say that ensuring pension benefits for all is very challenging and time-consuming. This dream will require a lot of time and resources.
Intensive research in this regard is needed on how and in what strategy can be adopted for it. The outline must be approved to implement by the government. Thus the hopes of all private employees can be fulfilled through its implementation. ‘Universal pension system’ has been introduced in many countries, including neighbouring India, which took them more than five years to implement. The task is a bit perplexing and tough. However, I think it is not impossible.
According to various sources, government employees, counting five percent of the total employees, are currently receiving pension benefits after retirement. On the other hand, 95 percent of the private sector officials and employees are being deprived. It is not acceptable in any way. Also, many employers mention leave and provident fund in appointment letters of their employees. But it is not effective in the real sense. Some working people in many informal sectors have no appointment letter. Therefore, it is imperative to take immediate steps for a universal pension system to ensure social security of the huge employees and their families. Otherwise, these huge working people are not able to mentally workout their full production capacity. Therefore, I think peace will return to society if all the employees working at the private level outside the existing government pension scheme can be brought under the universal pension system.
The Government of India introduced universal pension scheme in some states in 2004. Later this method is introduced in the whole of India. Nepal, Bhutan, and Sri Lanka have also started working on the issue. As a result, it seems that we are lagging compared to other countries. We have to take the country forward in harmony with other countries. It will be a milestone and a noticeable step for Bangladesh.
Note that a universal pension system will be introduced in the private sector on ‘partnership basis’. Both the employee and the hiring authority will deposit money in it to form a massive fund. Then these funds will be invested in profitable sectors through one or more companies approved by the government to earn a profit. Each employee will be deducted a certain amount from his / her monthly salary or income and, the employing authority will also deposit the same amount or more. After investing the money in the different investment project, the dividend or profit received from it will be given to the employees on retirement as monthly pension.
The universal pension system requires structural reforms, which need to be implemented through time and long-term planning. I think this universal pension system can play a role in the country’s GDP growth. Many people may believe otherwise like it would be hard work to launch because the government and the private recruiting authority should agree to it. It will not be possible to introduce this pension system unless the private employers agree. The main goal of the government is to introduce a universal pension scheme for private-sector workers to ensure social security. As far as I know, Prime Minister Sheikh Hasina herself is very positive about this. I hope it will be implemented in her direction.
Introducing a universal pension system will reduce many corruptions such as bribery in the name of giving government jobs. Because then there will be no difference between government and private jobs. As a result, I think corrupt people will not be able to take advantage of bribes. Inequality in society will come down. A new society can be formed through the universal pension system.
(Mr. Shafiqul is Assistant Professor, Jatiya Kabi Kazi Nazrul Islam University, Mymensingh and PhD Fellow, Zhongnan University of Economics and Law,
Wuhan, China).
