Introducing the Prottoy Scheme: A Sustainable Pension System for Bangladesh

In the world of finance, taxation and pension systems play a crucial role in providing financial benefits and ensuring compliance. Recent developments in taxation have focused on tax rebates and corporate tax. The National Pension Authority has requested action for tax rebates on Universal Pension deposits, aiming to provide financial benefits to individuals who have invested in the Universal Pension Scheme [929d1668]. On the other hand, the UAE has released guidance on corporate tax, emphasizing compliance operations and the need for tax deductions for pension provisions. It also highlights the supremacy of double taxation agreements between countries over UAE law [181045da]. These efforts highlight the importance of financial benefits and compliance in the financial sector.

In Nigeria, the Director-General of the National Pension Commission (PenCom) discusses the achievements and challenges of the contributory pension scheme. She emphasizes the increase in pension assets and new contributors, as well as the recapitalization of Pension Fund Administrators. The DG also addresses the challenges of low pension benefits, the Non-Interest Fund, infrastructure investment, and the potential impact of exemptions from the contributory pension scheme on the fiscal policy and financial system stability of the federal government [788d8b8a].

Meanwhile, in Oklahoma, the state's pension funds have faced criticism for taking exemptions to a law that prohibits them from doing business with financial companies perceived as hostile to the oil and gas industry. Oklahoma Treasurer Todd Russ has criticized the pension funds for this, despite his own office taking exemptions for investments managed by his office. The exemptions highlight the challenges faced by pension funds in navigating the Oklahoma Energy Discrimination Elimination Act. The treasurer's office argues that these exemptions are necessary due to the lack of other financial companies that can handle the transactional volumes. A pensioner and former officer at the Oklahoma Public Employees Association has sued the treasurer's office over the energy discrimination law, claiming it is unconstitutional and interferes with the duties of pension system trustees. The Oklahoma Public Employees Retirement System (OPERS) has responded to criticism from the Oklahoma State Pension Commission, stating that it followed the law in taking the exemption and that its request for proposal process for other potential investment managers was in line with industry norms. These challenges faced by the pension system in Oklahoma highlight the complexities of balancing financial interests and compliance with the law [4b95a42c].

In Namibia, retirement fund trustees are under scrutiny for their competence and accountability. The Pension Fund Act in Namibia lacks provisions that clarify trustee requirements and fiduciary obligations. The Namibia Financial Institutions Supervisory Authority (Namfisa) has issued guidelines for the composition and election of boards of trustees, but these are not prescriptive measures. Good governance and trustee training are essential for the effective and ethical management of retirement funds. Namfisa should craft a prescriptive directive outlining the 'fit and proper' requirements for trustees. Factors to consider include qualifications, financial stability, honesty, ethical conduct, and appropriate financial behavior. Improving trustee recruitment procedures and implementing governance standards are necessary to protect the interests of pension beneficiaries [7e6714f5].

In Bangladesh, the government has clarified the introduction of the new Prottoy scheme, stating that the current pension system for university teachers, which operates under an unfunded defined benefit system, is unsustainable. The government has introduced the Prottoy scheme to create a funded contributory pension system that will provide a sustainable pension system for the long term. Under the Prottoy scheme, the relevant institution or organization will deduct either 10% from the employee's basic salary or up to Tk5000 [whichever is lower], and the institution will contribute a matching amount. The new pension scheme is aimed at providing a sustainable pension system for people from all walks of life. All employees joining autonomous, semi-autonomous, and state-owned institutions after 1 July will be mandatorily included under the Prottoy scheme. Teachers and staff employed until 30 June 2024 will be eligible for the same pension benefits as before. The introduction of a new pension management system will gradually bring people from all classes and professions into a sustainable social security framework, facilitating financial inclusion and inclusive development [8d483a1d].

Overall, the theme that emerges from these diverse inputs is the challenges and importance of compliance in taxation and pension systems. Whether it is the efforts to provide financial benefits and ensure compliance in the financial sector or the challenges faced by pension funds in navigating laws and exemptions, the theme of compliance and its impact on financial systems is evident.