Govt moves to enhance pension benefits for retirees

The government has taken steps to resolve complications surrounding pensions for retired government employees and to introduce new benefits.

Under the new initiatives, if a retired officer remarries while receiving pension benefits, the second spouse will also be entitled to a pension after the officer’s death. At the same time, the waiting period for restoring pensions surrendered in full will be reduced from 15 years to 10 years. Retirees suffering from critical illnesses will now receive medical support from the Bangladesh Government Employees Welfare Board.

The decisions were made at a recent meeting chaired by Cabinet Secretary Dr Sheikh Abdur Rashid, with representatives from various ministries and departments in attendance. Retired Additional Secretary AKM Saiful Islam Chowdhury highlighted several pension-related issues during the session, according to Cabinet Division sources.

The meeting decided that the proposal to allow a second spouse to receive family pension will be forwarded to the National Pay Commission. The Finance Division will also review allowing retired expatriate officers to complete pension formalities at Bangladesh missions abroad.

Currently, under government rules, the first spouse of a deceased pensioner receives benefits for life. Pensioners who surrendered 100% of their pension must wait 15 years for restoration. Those with critical illnesses have not been eligible for medical support.

Cabinet Division sources said the Finance Division will also examine whether pensions can be granted to spouses or legal heirs of officers who died before the restoration period. Government employees receive monthly pensions after retirement, with spouses or eligible dependents entitled to benefits either for life or a specified period.

Since 1980, retirees have been allowed to withdraw their full pension in a lump sum, often using the money for family needs or passing it to their children. Many later faced financial difficulties and formed associations to press the government for relief.

On October 8, 2018, the government restored monthly pensions for those who surrendered full benefits, effective after 15 years of retirement. Retirees who withdrew their full pension currently receive two festival allowances and a medical allowance each year, but no monthly pension. The Finance Division will review cases where pensioners die before restoration.

The meeting also addressed increments in festival allowances. Since July 1, 2017, pensioners who surrendered 100% of their pensions have received allowances with a 5% increment, but this increment is not applied once pensions are restored. The Finance Division has been asked to resolve the issue.

Finally, the Ministry of Public Administration has been instructed to ensure critical-illness support for retirees, while the Finance Division will review adding the ministry secretary to the Social Safety Net Program Committee. Relevant departments are tasked with promoting awareness of the universal pension scheme.