UPS in Bangladesh: Challenges

Ahead
Presented by
Md Asif Hossain - 2215093060
Md Arafat Wasiullah - 2135289660
Md. Zamilul Islam Rakib - 2135502660
Farhana Sharmin - 1825170660
Kim Wi Ryong - 2135472660
Introduction
● Awami League's planned Universal Pension Scheme (UPS) is
oversimplified and excessively discriminatory.

● System fails to take into account Bangladesh's particular financial and

socioeconomic backdrop.

● Concerns with the UPS and proposes that the government offer policy
support while leaving UPS management to the private sector..
Proposed UPS in Bangladesh
● Eligible Criteria for the Pension
○ All citizen between ages of 18 to 50
○ Government employees won’t able to participate
○ Expatriates will be able to participate

● Administration & Funding of the Scheme

○ Will be governed by the Finance minister and include members from various
government agencies and organisations.
○ Pension scheme will be funded by monthly deposits by the beneficiaries
○ Government will invest the money deposited in various financial instruments
Challenges Ahead
● Low Coverage of the Scheme
○ Harder to make people aware about the scheme
○ Better corporate benefits will hinder the progress

● Sustainability Concerns
○ Funded by beneficiary funds only
○ Partial government contribution may put strain on budget
○ Efficient management of raised funds
Challenges Ahead
● Low Tax to GDP Ratio
○ 10% Tax-GDP Ratio
○ Revenue Collection Improvement

● Limited Involvement of the Private Sector

○ Private Sectors Indifference to Pension Fund

● Substantial Informal Sector

○ Scattered Workers Across the Country
○ High Admin Cost
Recommendation
● Improved Revenue Mobilization
○ Reformed approach to increase tax to GDP ratio

● Getting the Private Sector Involved

○ Provide professional services
○ Competitive investment return

● Improve Administrative Efficiency

○ Making registration and payment process easier to attract more individuals
○ Use technology to track issues and fight corruption
THANK YOU!