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Long-term bond for retired govt officials under study

FE Report | May 17, 2018 00:00:00

The Prime Minister's Office (PMO) has made some proposals including issuance of long-term bond for the investment of the retired government officials and employees, officials said.

Recently, Dr Mashiur Rahman, Economic Affairs Adviser to the Prime Minister (PM), has sent the proposals to the finance ministry for consideration, according to official sources.

Currently, some 697,212 retired government employees are receiving pension from the state coffer.

The economic affairs adviser placed five proposals in this connection. One of the proposals said investment amount to 'pensioner sanchayapatra' should be similar ahead of retirement.

Another proposal says interest/profit rate should be considered in line with general provident fund.

He also proposed to issue a 10-15 years maturity bond so that retired government officials and employees can invest in the proposed bond.

"We have received the proposals sent by the economic affairs adviser of PMO. We are working in this regard," a senior official of the finance division said.

According to the letter, investment ceiling to the 'pensioner sanchayapatra' has been changing time to time. Some conditions have been given for maximum investment ceiling to the sanchayapatra during retirement. That's why, investment ceiling should be similar.

'Pensioner sanchayapatra' is the main source of income after retirement. Income of retired government officials and employees will be increased if the government issues a long-term bond for investment by them, the letter mentioned.

Government officials and employees will be able to earn more income for the proposed bond. It will be an alternative income source, a finance ministry official said.

The 10-15 years maturity bond will give additional income security until 69-74 years old after retirement of the state officials, he mentioned. Currently, there are five-year maturity pensioners' savings certificates.

Retired government, semi-government, autonomous, semi-autonomous officials, retired justices of the Supreme Court, retired members of the army, spouse and children of the deceased pensioner, retired public servant can invest in the certificates.

A single retired person can invest some Tk 5.0 million individually, according to Department of National Savings.

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