Universal Pension Scheme: MFS service charge set at 0.7%

The mobile financial service providers can charge a maximum of Tk 0.7 for every Tk 100 deposited by the policyholders of the Universal Pension Scheme (UPS) as subscription fees to the pension authority.

The Bangladesh Bank (BB) shared the information through a directive today.

The move comes after the government rolled out the much-anticipated universal pension scheme on August 17 as part of an effort to bring the growing elderly population of the country under a well-organised social safety net.

The policyholders will get a monthly stipend after 60 years of age subject to consistent payment of instalment for 10 years.

The central bank, referring to a circular of the finance division issued on August 16, said the government earlier fixed the cash out charge at 0.7 percent for withdrawal of funds by the beneficiaries under social safety net schemes.

The same service charge will be applicable for payment of instalment for UPS through MFSs, it said.

Once the subscription fee is deposited to the accounts of the pension authority, the MFS providers will have to send confirmation messages to the policyholders, according to the finance division circular.

The universal person scheme brings citizens aged above 18 to 50 under the coverage.

Initially the government has opened four different schemes — Progoti, Surokkha, Somota and Probash — for citizens including those working in the private sector and Bangladeshis working or living abroad.