Highlights:
Government expands pension benefits including second-spouse entitlement and reforms
Second spouses eligible for pensions after pensioner’s death
Pension reinstatement waiting period reduced from 15 to 10 years
Retired pensioners with serious illnesses to receive medical assistance
Spouses or heirs eligible for pensions if pensioner dies early
Government promoting universal pension scheme for greater retiree awareness
The government has taken the initiative to enhance pension benefits for retired employees – including second-spouse entitlement, medical assistance and other reforms – while addressing longstanding issues faced by pensioners.
Officials from the Cabinet Division told TBS that under the new measures, if a pensioner remarries, their second spouse will also be eligible for the pension after the pensioner’s death.
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In addition, the waiting period for reinstating the pension of officials who surrendered 100% of their pension will be reduced from 15 years to 10 years.Â
Moreover, pensioners suffering from complex illnesses will now also receive medical assistance from the Government Employee Welfare Board (Bangladesh Karmachari Kallyan Board), a support previously unavailable. Only active employees currently get this support.
At present, only the first spouse of a deceased pensioner continues to receive the pension for as long as they live.Â
Besides, some officials fully surrendered their pension (gave up their right to it, usually to receive a lump sum or another benefit). If they later want their pension reinstated, they currently have to wait 15 years.
A senior Cabinet Division official, speaking on condition of anonymity, told TBS that a recent meeting, chaired by Cabinet Secretary Sheikh Abdur Rashid, decided that in cases where pensioners who surrendered 100% of their pension die before reinstatement, the pension could be approved in favour of their spouse or eligible heirs following review by the Finance Division.
Representatives from relevant ministries and departments, along with retired officials, attended the meeting to discuss pension-related hurdles. Retired Additional Secretary AKM Saiful Islam Chowdhury highlighted various issues faced by pensioners during the meeting, he said.
After retirement, government employees receive a monthly pension. When a pensioner dies, their spouse continues to receive it for life, or in some cases, eligible dependents receive it for a set period.
Since 1980, pensioners could withdraw their entire pension in a lump sum, often for family needs. Many later faced financial difficulties. They no longer received monthly payments but got two festival allowances and a medical allowance annually.
To ensure the financial and social security of officials who surrendered 100% of their pension, the government decided on 8 October 2018, to reinstate the monthly pension for them. However, a Finance Division notification stated that pension reinstatement for these employees could only occur 15 years after their retirement.
If a pensioner dies before reinstatement, their spouse or eligible heirs do not currently receive benefits. The Cabinet Division has instructed the Finance Division to review and approve pensions in favour of spouses or heirs in such cases.
Officials who surrendered 100% of their pension have been receiving a festival allowance with a 5% annual increment since July 1, 2017. However, this increased amount is not yet included when their pension is reinstated. The Finance Division has been instructed to address the issue.
In addition, the Ministry of Public Administration has been asked to review and implement the medical assistance of retired officials.
The Cabinet Division has also directed relevant ministries and departments to promote the universal pension scheme widely to raise awareness among retirees.
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