Cabinet Approves 'The President Pension, Gratuity and Other Privileges Act' And "Bangladesh Coinage Act'

The approval was given in the regular meeting of the cabinet at the cabinet room of Bangladesh Secretariat with Prime Minister Sheikh Hasina in the chair.

Briefing reporters after the meeting, cabinet secretary M Musahrraf Hossain Bhuiyan said both the drafts were given final approval subject to the vetting of the law ministry.

"The President Pension, Gratuity and Other Privileges Act, 2015 has provision of 'no pension' for the Presidents in case of illegal taking over of state power.

According to the act, a retired President would get as usual 75 percent of their salary as pension. However, the financial benefit would not be applicable for retired President in three cases, the cabinet secretary said.

"The pension and gratuity would not be applicable- (1) if a retired President holds office of in another government office and receives salary and other benefits from the "Consolidated Fund' of the government, (2) if any President is punished for moral deviation or criminal charge, and (3) if a competent court declares the occupation of the office of the President illegal," he said.

The cabinet secretary said the draft of the law has been finalized accommodating some observations and directives of the cabinet given when it was first placed in the cabinet meeting in December last year. The existing President's Pension Ordinance 1979 as amended in 1988 will be replaced by the new law.

The new law would be applicable for all Presidents since independence and under the law nominee/nominees or heirs may receive the pension and gratuity of a late/retired President if it was not received before.

The cabinet also has given final nod to the draft of Bangladesh Coinage (Amendment) Act, 2015 giving the government authority to issue paper note/coin of Taka five denominations. He said after passage of the law, paper/coins of all denominations from one paisa to Taka five would be considered as government note.

Cabinet secretary said both the government and banks notes and coins of five taka denomination would have legitimacy and be transacted simultaneously. Government notes of Taka five denomination will phase out the bank notes of same denominations gradually.

Issuance of new government notes of taka five would not create any inflation in the market as the amount in total would be very insignificant in terms of total circulated money. After completion of the phasing out of the bank notes of taka-five denomination the amount of the government notes would only be 1.5 percent of total circulation of the money, the cabinet secretary said.