Muhith favours only 50 percent encashment of pension money

Finance Minister AMA Muhith today said the government service holders can encash their pension money by only 50 percent after their retirement, instead of previous 100 percent on their own decision.

“The present government through a gazette notification issued on January 9 and with effect from July 1 this year abolished the provision of withdrawing 100 percent retirement benefit, a wrong decision that bereft the retired officials of enhanced benefits,” he told reporters after a meeting at the secretariat here.

Responding to a question on launching pension in the private sector, the minister said the government has undertaken a plan to introduce pension facilities in the private sector but it would take time.

According to a circular issued by the Finance Division of the Ministry of Finance, the government employees can encash 50 percent of their pension money after retirement and rest of the amount can be drawn on monthly installments.

The pensioners will get a five percent increment on their monthly pension amount from July 1, 2017, the circular said.

Source: BSS