The government has delineated seven sectors where the Universal Pension Scheme can be invested, explicitly excluding private enterprises. 

This provision is part of the Universal Pension Scheme (Investment and Preservation) Regulations, 2024, issued by the government and signed by Finance Ministry Additional Secretary Dilruba Shaheena, officially gazetted on July 9.

These regulations are pursuant to the Universal Pension Management Act, 2023, which stipulates in Section 18 that the investment of pension funds collected through contributions will be determined by regulation.

The pension law emphasizes low-risk investments. "The board of directors will approve guidelines for investing pension funds in government securities, other low-risk securities, profitable infrastructure, etc, providing necessary advice or instructions as needed."

The regulations specify the permissible investment avenues for the pension scheme: treasury bonds, treasury bills, other government securities (such as Shariah-compliant Sukuk issued under the Public Debt Act), fixed deposits in high-rated scheduled banks (rated at least AA long-term and ST-1 short-term by recognized rating agencies), mutual funds approved or regulated by the Bangladesh Securities and Exchange Commission, A category bonds listed on stock exchanges, and securities of projects implemented or under implementation by the government or its agencies.

No more than 25% of the funds can be invested in any single sector other than government securities. 

The regulations expressly prohibit investing the funds in private enterprises.

They state that a committee shall be formed to manage the funds, chaired by a member of the National Pension Authority. 

Other committee members will include a member of the authority (investment policy), representatives (minimum joint secretary level) from the treasury, debt management and regulation divisions of the Ministry of Finance, a representative from the finance department of Dhaka University, and a director-level representative each from the BSEC and the Debt Management Department of Bangladesh Bank. 

The general manager (fund management) of the pension authority will serve as the committee's member secretary. 

The committee may also co-opt any individual as a member as needed.

The committee can open separate bank accounts in state-owned banks for different schemes under the Universal Pension Management System, into which all scheme funds will be deposited.

Any actions or decisions taken by the executive chairman or any member or employee of the authority regarding the preservation and investment of the funds prior to the issuance of these regulations will be considered valid if they align with these regulations.

Md Golam Mostofa, a member of the National Pension Authority, told this correspondent that these regulations had been formulated in accordance with the law to ensure investment of the fund's money. 

The law called for low-risk investments, and accordingly, the permissible investment sectors for the pension scheme funds had been clarified, he added.