Pension System in Bangladesh

PENSION SYSTEM IN BANGLADESH

INTRODUCTION:

Bangladesh lays within the northeastern a part of South Asia having borders with Asian nation, Union of Burma and also the Bay of Bengal on the southern aspect.

Pension system in Bangladesh is principally discovered in government services and it takes the shape of provision of annuities for the aged. The pension problems area unit settled per the principles of the general public Servants (Retirement) Act of 1974. There area unit six broad classes of pensions that is careful and analyzed during this report. Adulthood pensions, bonded by a government to its staff emerged in France within the nineteenth century. The introduction of pension eventually unfolds to several countries of Europe and North America within the 1st decade of twentieth century. In Bangladesh, pension for older population was 1st introduced in 1924, primarily for the govt. staff. it absolutely was then re-modified by the Bangladesh Government in 1972. Later on, in 1974 pension was paid on the idea of an explicit % of last pay drawn rather than twelve months average pay. The utmost pension quantity was hr of the last pay, then again in 1977 the number was fastened at eightieth of the fundamental pay drawn and it's still used nowadays.

DIFFERENT TYPES OF PENSIONS IN BANGLADESH:

In 1994, the govt. simplified the principles and laws concerning enabling of the pensions of the govt. officers, on the idea of length of qualifying service rendered and quantity of emoluments last drawn. the govt. additionally imposes regulation, wherever an individual will enter into government service from a minimum of eighteen years’ age on condition that the person has requisite qualification for service and once they finally develop or reach the age of retirement from a government service i.e. 63 years, they're entitled for various kinds of pensions namely:

1)        Compensation Pension  

2)        Invalid Pension

3)        Superannuation Pension

4)        Retiring Pension

5)        Optional Pension &

6)        Family pension

IDENTIFY THE PROBLEM:

•        The major downside arises as a result of Bangladesh is AN ageing population country and also the proportion of senior population has been step by step increasing. Presently regarding 6 June 1944 of the populations area unit senior i.e. nine million folks. By 2025 one in 10 persons are going to be senior i.e. eighteen million folks. However adulthood is neither a sickness nor a private problem; rather, it's become a worldwide challenge that has to be addressed globally. Nobody will stop the method of ageing. The standard of life and also the rate of ageing each vary significantly betting on variety of things like education, occupation, buying capability, lifestyle, food habit, residential location, belief and culture, etc.

•        Another downside is that the state is that the provision of adulthood Allowance, that covers solely regarding twenty % of older persons. Again, the formal pensioners, retired government servants, represent solely a negligible fraction of them. Despite family intervention, retirement check and old-age allowance, virtually common fraction of older persons stay uncared for. a big variety of older persons in Bangladesh go on charity i.e. beggary that is truly prohibited in Bangladesh and isn't a apply we should always support.

•        In Bangladesh, there's a pension plan system for the staff of state organization except for personal organizations pension plan system usually will’s exist and if it does then it's not a well organized one . A pension plan provides a worker the reassurance to measure a financially secure life once retirement. It provides them hope that within the time of a bigger money crisis they need some saving to survive. From that understanding, the study has been  conducted to spotlight  the current pension plan system Bangladesh and to advocate a  structured pension plan system for the well – being of the staff operating privately organizations.

•        Among this there are a unit twenty million laborers WHO works within the agriculture sector and with regards to nineteen million employees used within the industrial sectors area unit disadvantaged from the availability of pension. equally migrant employees additionally don't receive any pension, as a result of Bangladesh has not created any policy for retirement and pension for personal sector workers; they solely receive some gratuity at retirement however no edges.

•        Another major issue is that within the case of Superannuation Pension the precise birth date isn't perpetually familiar within which case date of birth is assumed and rationality older is lost.

•        The Pension procedure takes long-standing for the sanction of various kinds of pension.

•        For lack of employment and higher earning laborers within the country migrate for overseas employment and for higher financial gain, which could have a negative impact on the expansion of the economy.

•        The vital purpose during this case is that in abolishing the posts the financial gain of the govt. should be magnified, thus during this method the financial gain of the govt. should be over the number of the compensation pension to be paid.

DEFINING THE PROBLEM:

1)        A) Agricultural Sector:

The sector consists of biological science, crops and agriculture, animal farming and fishing sub-sectors. Since these employees constitutes regarding five hundredth of the whole employment of our country, and contributes regarding four-hundredth of the whole gross domestic product, they must lean privilege to some style of pension plans as a result of if the person dies the dependent members of the family face serious money reversal.

              B) Industrial Sector:

This sector consists of all industries of the country together with corporations and alternative organizations that constitutes regarding forty eighth of the whole employment of the country, and contributes regarding twenty sixth of the whole gross domestic product of Bangladesh. The expansion rate of trade sector was regarding 11th of September in 2002-2003 that exceeds rate of agriculture sector by four.11 percent. And since the govt. isn't paying any pension, the employees on retirement and their families face money constraints. At adulthood they become physically and mentally weak and hardly get jobs elsewhere once retirement. They and their families together with dependents stay in money insecurity throughout their adulthood.