Govt resolved on pension scheme, university teachers adamant on protests

Despite strong protests from university teachers, the government has been firm in its decision to implement the universal pension scheme at public universities and some other organisations.

The teachers have been boycotting all classes and examinations as part of an indefinite strike, demanding their exclusion from the pension scheme.

In such a situation, the government presented counterarguments to the protesting teachers, but only to receive refusal. Finance minister Abul Hasan Mahmood Ali criticised the protests as 'irrational.'

Over the stalemate, a meeting was supposed to take place between the teachers and road transport and bridges minister Obaidul Quader, as well as education minister Mohibul Hasan Chowdhury on Thursday, but it did not happen. The meeting might take place sometime this week.

Teachers from 39 public universities, including Dhaka University, Rajshahi University, Chattogram University, Jahangirnagar University, Jagannath University, and Bangladesh University of Engineering and Technology (BUET), are holding protests against the pension scheme on their respective campuses. University officers and staff have also joined the teachers’ protest rallies and sit-ins.

The demands include the teachers' exclusion from the Prottoy pension scheme, their enrollment into the super grade, and the introduction of a dedicated pay scale for them.

The teachers will resume their protests on Sunday as there have been no programmes over the weekend, Friday and Saturday. They said the meeting with ministers is likely to take place this week, potentially on Sunday or Monday, though the exact time has not been fixed.

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.

Asked about the issue, the state minister for finance, Waseqa Ayesha Khan, told Prothom Alo that the Prottoy scheme will apply not only to public universities but also to 403 organisations for new recruits.

“Teachers are persons of dignity. They can protest in this democratic country. But it (the pension scheme) is a good initiative when most organisations did not have a pension system at all,” she said.

Highlighting its benefits, the state minister noted, “Prottoy and other pension schemes have been introduced so that everyone benefits, and the universal pension scheme will surely be implemented for the betterment of people. There is no reason to consider it negatively, and there is no question of stepping back.”

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.

Among them, some 90 organisations had a pension system, while the remaining 313 did not.

The protesting teachers have argued they receive a one-time gratuity of around Tk 8.1 million and a monthly pension of about Tk 45,000 after retirement, without making any contributions from their salaries during the service period. They also receive festival bonuses, medical allowances, and other benefits.

In contrast, the universal pension scheme deprives the new recruits of these benefits. The newly appointed teachers and other staff will have to contribute monthly from their earnings to receive a pension after retirement, and their nominees will receive pensions for only a limited period.

Hence, the protesting teachers have described the new pension scheme as unacceptable.

In this regard, former finance secretary Mahbub Ahmed has said there is criticism that a large share of the budget is spent on operating expenses, which limits development spending.

He believes this criticism is rational to some extent. The days of significant budget spending on pensioners are coming to an end. Also, it is not a sustainable system.

"The government’s capacity should also be considered. I think the universal pension schemes are perfect in the larger interest,” he said.

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.

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.

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.