Finance Minister AHM Mustafa Kamal said the universal pension scheme is likely to come into effect in the next fiscal year.
The work on intruding the scheme has progressed substantially, he said in his budget speech on Thursday.
"I hope, it will be possible to roll out the scheme from FY2023-24," the minister said.
He said that the 'Universal Pension Management Act, 2023' has already been passed by the Parliament.
Under the proposed scheme, a beneficiary can enjoy pension benefits subject to the payment of subscription up to the age of 60 years if he or she enrolls at the age between 18 to 50 years.
However, those who enroll at their age of more than 50 years have to pay subscription for a minimum of 10 years, he said.
The expatriate Bangladeshis will be able to participate in this scheme, the finance minister said.
He further said if the pensioner dies before attaining the age of 75 years while on pension, the nominee of the pensioner will be entitled to the pension for the remaining period of the pensioner's completion of 75 years.
If the subscriber dies before paying the subscription for at least 10 years, the deposited money will be returned to the nominee along with the profit, he said.
A maximum of 50 per cent of the deposited amount can be withdrawn as loan by the subscriber by submitting an application.
Contributions to the pension fund will be treated as investment and tax rebate can be availed against it, according to the budget speech.
Besides, the amount received as monthly pension will be exempted from income tax, it said.
"Introduction of Universal Pension System is a very significant initiative for the inclusive development strategy of Hon'ble Prime Minister Sheikh Hasina," said the finance minister.
A pension authority will be established very soon and will be activated through appointment of necessary manpower, he added.
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