The Jiban Bima Corporation (JBC), the country’s sole state-owned life insurance provider, officially launched a new pension insurance policy last Sunday under the name ‘JBC Pension Insurance’. However, questions have been raised by the National Pension Authority (NPA) regarding whether JBC had the authority to introduce this policy.
JBC had previously offered a similar pension insurance policy, which was discontinued on 1 December 2023. The policy has now been reintroduced under a new name. The new policy received approval from the insurance sector regulator, the Insurance Development and Regulatory Authority (IDRA).
According to JBC, the new pension plan is open to all Bangladeshi citizens, including government and private sector employees, expatriates, entrepreneurs, contractors, and other professionals.
In August 2023, the Awami League government launched a universal pension system with four schemes—Pragati, Probas, Suraksha, and Samata. Over two years, these schemes collected contributions totaling Tk 213 crore. After the government changed on 5 August 2024, the National Pension Authority experienced some slowdown, but the interim government led by Professor Muhammad Yunus prioritized expanding the program. A pension fair is scheduled to be held in Khulna on 26 October, inaugurated by Cabinet Secretary Sheikh Abdur Rashid.
Economic Advisor Salehuddin Ahmed has repeatedly praised the universal pension scheme, emphasizing that it plays a crucial role in establishing sustainable social security in the country.
Questions of Authority
While the government seeks to expand the universal pension system, JBC unilaterally relaunched its pension insurance policy, raising questions about its legality. The primary concern comes from the National Pension Authority, which oversees universal pensions.
JBC operates under the Financial Institutions Division of the Ministry of Finance, whereas the NPA manages the universal pension schemes. The NPA board, chaired by the economic advisor, also includes the Finance Secretary, Secretary of the Financial Institutions Division, and Labor Secretary.
JBC’s chairman, Md. Mokhlesur Rahman, who previously served as the Secretary of Public Administration, remains in the post despite being transferred to the Planning Commission. The board includes professionals from various ministries, along with a finance professor from Dhaka University, a chartered accountant, and the director of the Insurance Academy. This board approved the launch of the new JBC Pension Insurance.
Pension Authority’s Response
Two senior officials of the NPA Board member Golam Mostofa said, “A parallel pension scheme is unjustified. We will review whether JBC’s policy conflicts with the law.” Executive Chairman Mohiyuddin Khan added, “JBC cannot create a policy using the word ‘Pension.’ I will discuss with the Secretary of the Financial Institutions Division why this was done.”
Financial Institutions Division Secretary Najma Mobarak stated, “The decision was made by the JBC board. I will look into the matter.”
JBC and IDRA Statements
Attempts to reach JBC’s chairman and managing director were unsuccessful. Majedul Islam Sarkar, General Manager (Development) at JBC, said, “Although the previous pension insurance was discontinued, research confirmed that relaunching JBC Pension Insurance was feasible. IDRA approval was obtained before launching.”
IDRA Life Member Apel Mahmud added, “JBC has the authority to do this.”
Awaiting Economic Advisor’s Return
Economic Advisor Salehuddin Ahmed is attending the World Bank and IMF annual meetings in the United States from 13–18 October. Stakeholders expect that upon his return, he will coordinate between JBC’s new pension insurance and the NPA’s universal pension schemes to establish policy alignment.
Previously in 2021, JBC launched ‘Bangabandhu Universal Pension Insurance (with profit)’. When the government introduced the universal pension system, both programs ran simultaneously. On 5 August 2024, JBC renamed the old policy to ‘Term Benefit Pension Insurance’ to differentiate it from the new scheme.
— এমএজেড