After years of waiting, retired teachers and employees of non-government educational institutions have started receiving their retirement and welfare benefits.
The Non-Government Educational Institution Teachers and Employees Retirement Benefit Board and the Welfare Trust have simultaneously released a portion of the dues for nearly all applicant teachers and staff.
Retired teachers and employees had faced a prolonged crisis in receiving their retirement benefits. During the interim government’s tenure, the process of disbursing these funds had almost come to a halt.
Delays in providing retirement benefits increased after the pay scale was implemented in 2015 under the Awami League government. There were also allegations of corruption.
Many teachers and employees had to pay bribes to receive the money they were entitled to.
Education Minister ANM Ehsanul Hoque Milon recently said at an event in Dhaka that nearly Tk 70 billion belonging to teachers’ retirement benefits and the Welfare Trust had been misappropriated during the previous Awami League government.
Due to irregularities and negligence, teachers and employees had to wait as long as three to four years after retirement to receive the money they were entitled to. Those concerned believe the government’s initiative will significantly reduce the frustration and anger that had developed over the issue.
According to them, despite the current severe economic crisis, Prime Minister Tarique Rahman has taken a special initiative to try to resolve the long-standing problem.
Those concerned have welcomed the move to release the funds, saying it will bring an end to the prolonged wait of retired teachers and employees.
However, the amount being disbursed for now does not cover their full entitlement. Teachers and employees now hope that the government will soon pay the full amount of their benefits.
Officials of the two organisations concerned said the government would need to provide a special allocation to pay applicants their full entitlements quickly.
Prime Minister Tarique Rahman inaugurated the disbursement of retirement and welfare benefits for non-government teachers and employees on Saturday.
On the same day, the authorities released funds in favour of the applicant teachers and employees. They were also informed of the disbursement through text messages sent to their mobile phones.
Delays in providing retirement benefits increased after the new pay scale was implemented in 2015 under the Awami League government. There were also allegations of corruption
Funds released for 70,000 teachers and employees
According to the Non-Government Educational Institutions Teachers and Employees Retirement Benefit Board, funds covering a portion of the retirement benefits have been or are being released for 70,119 teachers and employees this time.
The process is costing approximately Tk 15.5 billion (1,550 crore). The funds are being provided to applicants who submitted their applications between January 2022 and July 2026.
Many teachers and employees have already received the money. The authorities concerned said those who have not yet received it will receive the funds in phases.
However, funds could not yet be released for more than 4,000 applicants because their applications were incomplete. In addition, disbursements to some other applicants have been held up because their applications contained various errors.
The authorities have similarly released a portion of the welfare benefits. Approximately Tk 6.47 billion (647 crore) has been released against 53,477 applications. A teacher or employee is entitled to both retirement and welfare benefits.
The benefits are being paid primarily from the contributions deducted from teachers’ and employees’ salaries during their employment.
Under the welfare benefit scheme, teachers and employees have received or are receiving amounts ranging from approximately Tk 5,000 to a maximum of Tk 316,000. For retirement benefits, a maximum of Tk 450,000 is paid.
An official of the Welfare Trust told Prothom Alo that some teachers had worked for only a few months. Some of them had received as little as Tk 5,000.
However, most teachers and employees had received more than that. The funds are being provided to applicants who applied for welfare benefits between May 2023 and June 2026.
Crowds at retirement benefit board office
When visiting the offices of the Welfare Trust and Retirement Benefit Board in the capital’s Eskaton Garden area yesterday, Sunday, it was found that several teachers and employees, or their relatives, had come to enquire about why they had not yet received their money. Officials listened to their problems and asked them to provide the necessary documents.
Officials concerned said they were transferring the funds directly to teachers’ and employees’ bank accounts through the ‘iBAS++’ software. In this process, the authorities verify the National Identity Card and bank account details.
As a result, even a minor error in an application can prevent the transfer of funds. The authorities will send the money again after correcting the errors.
A retired principal of a well-known educational institution in Dhaka visited the office of the secretary of the Retirement Benefit Board to ask why he had received a comparatively small amount this time, despite his total retirement benefit entitlement being much higher.
He was told that the authorities were currently paying a portion based on the contributions deducted from his salary during his service. He would receive the remaining amount later. After understanding the matter, he left.
The Welfare Trust office also saw a similar situation. A retired female teacher said she had received approximately Tk 190,000. She asked when she would receive the remaining amount. Officials told her, “This is also a portion of the welfare benefit; you will receive the remaining amount later.”
Officials initially checked the documents of some teachers or their relatives and found problems with the National Identity Card, bank account or nominee’s documents in individual cases. The authorities are taking steps to rectify the issues after receiving the required documents.
An official of the Welfare Trust told Prothom Alo, “As we are disbursing the money through ‘iBAS++’, the information in the application must match the National Identity Card and bank account details. Therefore, if there is an error, the money is returned. We will correct these issues and send the money again. There is nothing to worry about.”
Large allocation needed for full payment
More than 600,000 teachers and employees work at MPO-listed non-government educational institutions across the country. Two separate organisations administer their retirement and welfare benefits.
The Teacher Employee Welfare Trust provides welfare benefits, while the Teacher Employee Retirement Benefit Board provides retirement benefits.
The authorities mainly finance these benefits through contributions collected from teachers and employees, interest earned on money deposited in banks, and various allocations and bond returns provided by the government at different times.
During their employment, teachers and employees contribute 6 per cent of their basic salaries towards retirement benefits and 4 per cent towards welfare benefits.
The authorities collected contributions at these rates until 2019. Before that, they collected 4 per cent for retirement benefits and 2 per cent for welfare benefits.
In addition, each student contributes Tk 100 a year. Of this amount, Tk 70 goes to the retirement benefit fund and Tk 30 to the welfare benefit fund.
The remaining amount is adjusted using government funds and interest earned on the accumulated fund.
According to sources concerned, a teacher in the highest grade may receive approximately Tk 3.8 million (38 lakh) in total retirement benefits and around Tk 1.5 million (15 lakh) in welfare benefits. The amount varies depending on the teacher’s grade and length of service.
Sources at the two organisations said contributions collected from teachers and employees currently generate approximately Tk 1.04 billion (104 crore) each month for retirement benefits.
However, the authorities need an average of around Tk 2.1 billion (210 crore) every month to pay retired teachers and employees their full entitlements. This leaves a substantial shortfall every month.
According to the Non-Government Educational Institutions Teachers and Employees Retirement Benefit Board, funds covering part of the retirement benefits have been or are being released for 70,119 teachers and employees this time. The process is costing approximately Tk 15.5 billion (1,550 crore). The funds are being provided to applicants who submitted their applications between January 2022 and July 2026.
The authorities need approximately Tk 97.3 billion (9,730 crore) to pay the full retirement benefits owed to the 70,119 teachers and employees who have submitted applications so far.
The Retirement Benefit Board currently has around Tk 17.55 billion, of which approximately Tk 15.5 billion (1,550 crore) is being disbursed this time. Therefore, the existing fund is insufficient to pay applicants their full benefits.
The welfare benefit scheme also faces a similar financial shortage. According to sources concerned, approximately Tk 30 billion (3,000 crore) is required to pay applicants their full entitlements.
The government has already provided bonds worth Tk 18 billion (1,800 crore) to the Retirement Benefit Board and Tk 2 billion (200 crore) to the Welfare Trust.
Earlier, during the interim government’s tenure, it provided another Tk 22 billion (2,200 crore) in bonds. However, these bonds generate returns every six months.
Therefore, in addition to bonds, the authorities need cash or budgetary allocations to pay the full entitlements of a large number of applicants immediately.
Mohammad Mosharraf Hossain, secretary of the Retirement Benefit Board, told Prothom Alo, “To reduce the suffering of retired teachers and employees, the government has provided a portion of the benefits to a large number of teachers and employees at once. I hope the government will provide a special allocation.”