Asian News - Bangladesh: Govt plans to form pension fund authority for private sector
Source: Asia Insurance Review | Mar 2016
The Bangladeshi government plans to form a pension fund management authority for private-sector employees. The new agency is likely to start functioning in 2018.
The establishment of the authority would be in line with the government’s plans for a mandatory private pension scheme to cater to the vast majority of citizens. Existing pension programmes in the country are largely confined to employees in the government and semi-government sectors.
Local insurance companies are expected to get involved with the private-sector pension initiative. “If local insurers are involved in both public and private sectors’ pension schemes, the initiative will get a boost,” Senior Finance Secretary Mahbub Ahmed told Dhaka Tribune.
The three-year project – Bangladesh Insurance and Private Pension Market Development - will be financed by the World Bank and the government. The multilateral lender will provide US$80 million and the government will bear the remaining $20 million, said a finance ministry official.