The government has taken initiatives to reduce the delays in providing retirement and welfare benefits to teachers and employees of non-government educational institutions under the MPO. Initially, funds from the Retirement Benefits Board will be used to provide benefits to several thousand teachers and employees. Additionally, the government has issued bonds worth Tk 2,000 crore for these two institutions.
Thousands of teachers and employees have been waiting for months and even years to receive their due benefits after retirement. Some have not received their money even at the end of their lives, causing deep frustration and anger among the teaching community.
According to sources from the Ministry of Education, currently, there is approximately Tk 1,820 crore in the Retirement Benefits Board and about Tk 350 crore in the Welfare Trust. However, the total amount of deposited money will soon increase slightly.
Sources indicate that a proposal has been made to provide partial funds (Tk 5 lakh each) to about 8,000 teachers for retirement benefits. So far, funds have been prepared for 3,100 individuals. On the other hand, the Welfare Benefits Board is ready to provide benefits to about 3,500 teachers and employees. However, these numbers may vary.
Abdul Khalek, Secretary of the Secondary and Higher Education Division of the Ministry of Education, mentioned that a committee has been formed to address this issue.
There are over six lakh MPO-enrolled teachers and employees in private educational institutions across the country. Their retirement and welfare benefits are managed by two separate institutions. The Non-Government Educational Institutions Teachers and Employees Welfare Trust provides welfare benefits, while the Non-Government Educational Institutions Teachers and Employees Retirement Benefits Board provides retirement benefits. Recently, these two institutions have been relocated to the Prabashi Kalyan Bhavan in Eskaton Garden.
For retirement benefits, 6% of the basic salary of teachers and employees is deducted monthly during their service. An additional 4% is deducted for welfare benefits. Additionally, Tk 100 is collected annually from each student, of which Tk 70 goes to the retirement benefits fund and Tk 30 to the welfare benefits fund. The remaining funds are supplemented by the government and interest from the deposited money. Despite regular contributions during their service, teachers and employees often cannot withdraw their money on time upon retirement.
According to the Retirement Benefits Board, teachers and employees who applied up to December 2021 have received their retirement benefits. However, about 64,000 teachers and employees who applied after that have not yet received their money. Currently, applications submitted up to May 2022 are being processed.
On the other hand, due to the relatively smaller amount of money, the waiting time for receiving funds from the Welfare Trust is somewhat shorter. The Trust has reported that applicants up to April 2023 have received their welfare benefits. As of May 24, applications from 44,966 teachers and employees remain unresolved.
Currently, there is a deficit of about Tk 7,500 crore in the retirement benefits sector and about Tk 2,813 crore in the Welfare Trust.
Sources from the Ministry of Education indicate that due to the absence of a regular committee for a long time, no new applicants were being provided funds. Now, with the formation of the committee, this opportunity has arisen. Initially, funds will be provided to teachers and employees using the deposited money. The goal is to disburse these funds within the next 15 days.
Meanwhile, the government has already issued bonds worth Tk 1,800 crore for the Retirement Benefits Board and Tk 200 crore for the Welfare Trust. Previously, during the interim government, bonds worth Tk 2,200 crore were issued. Profits from these bonds will be received every six months.
Efforts are also underway to make the process of providing retirement benefits to teachers and employees simpler and more automated. The Ministry of Education has announced that a contract will soon be signed with the Bangladesh University of Engineering and Technology (BUET) for this purpose. It is hoped that the software will increase transparency and speed in the application and fund disbursement process.
