Teachers of public universities have been holding an all-out strike on campuses protesting their inclusion in the Prottoy pension scheme. A similar scenario has been reported in some other entities that have been brought under the pension scheme.
The Prottoy scheme came into effect on July 1 for newly recruited employees in a total of 403 state-run, self-governed, autonomous, and statutory organisations. These entities include all government banks, the Anti-Corruption Commission, Bangladesh Securities and Exchange Commission, and Petrobangla.
It was learned that some of the institutions have been experiencing internal dissatisfaction over the new pension system, though the officials here are yet to be as vocal as the university teachers.
Prothom Alo reached out to top officials of six different institutions on Friday, and found them all to be discontent with potential financial implications of the new pension initiative.
Expressing concerns over inflation and declining value of money, they said the amount an employee is supposed to receive after 30 years under the Prottoy scheme is much lower than the existing pension benefits.
They particularly pointed out that the employees will get no one-time gratuity under the Prottoy scheme, unlike the conventional pension system.
The government has more than 100 secretary-level officers and 10 to 15 senior secretaries, while a public university might have around 500 professors, and they all want the status of secretaries and senior secretaries. Is it realistic?Anonymous finance division official
Some 90 of the 403 institutions now offer pensions under the conventional system. They offer lifetime pension benefits to the nominees in absence of the main pensioner.
In contrast, under the Prottoy scheme, the nominees will not be eligible for a lifetime pension. A nominee will receive pension after the death of the original pensioner, and it will continue until the date the original pensioner would have turned 75.
Regarding their protests, Akhtarul Islam, president of the Federation of Bangladesh University Teachers' Association (FBUTA), said, “We seek discussion. If we sit, we hope to be able to convince the government’s responsible persons how unfair and discriminatory the declared Prottoy scheme is.”
He, however, vowed to continue their movement until their demands are met.
Under the Prottoy scheme, a monthly pension of Tk 124,660 is expected after 30 years if both the employee and employer each contribute Tk 5,000 monthly.
The finance ministry’s finance division had issued the circular of Prottoy pension scheme. While talking to Prothom Alo, an official of the finance division expressed disapproval of the demands of the university teachers.
He said on the condition of anonymity that the teachers have now included demands for their inclusion in the super grade and a dedicated pay scale.
Explaining the reality, he said when the government has more than 100 secretary-level officers and 10 to 15 senior secretaries, a public university might have around 500 professors, and they all want the status of secretaries and senior secretaries.
Is this realistic? He asked.
Authorities would fix minor inconsistencies, if any, under a continuous process. Since it is a significant government initiative, all the schemes, including Prottoy, will surely proceed as planned.Golam Mostafa, a member of the national pension authority
Govt resolved in its stance
In an official statement, the authorities said on 2 July that there is an 'unfunded defined benefit' under the existing pension system, and the government has to bear its expenses from the budget. It is not a sustainable pension system in the long run as it seeks growing contributions from the government.
In the universal pension scheme, the authorities introduced a ‘funded defined benefit’ system and aim to create a sustainable social security structure for all classes and professions.
Golam Mostafa, a member of the national pension authority, said they would fix minor inconsistencies, if any, under a continuous process. Since it is a significant government initiative, all the schemes, including Prottoy, will surely proceed as planned.
As the public university teachers retire at 65, they will be receiving pensions for a lifetime from the time of their retirement. The government will carry out necessary reforms in the pension scheme to facilitate their pension from the age of 65.
Under the Prottoy scheme, a monthly pension of Tk 124,660 is expected after 30 years if both the employee and employer each contribute Tk 5,000 monthly.
Former secretary AKM Abdul Awal Majumder expressed concerns over the lack of coordination regarding the pension schemes among the responsible ministries.
“I see the lack of coordination among responsible ministries regarding the whole issue. For my money, there was a need to discuss and review this matter over a long period of time. The scope is still there,” he told Prothom Alo.