Public uni teachers suspend classes, exams, demanding Prottoy scheme withdrawal
In addition to public universities, employees working in autonomous, state-owned, and other statutory organisations, along with their subordinates, will also fall under the pension scheme, which is set to be implemented from Monday
Teachers at public universities across the country, including Dhaka University, have announced the suspension of all classes and examinations from Monday (1 July) in protest of the government's decision to mandate the Prottoy scheme of the Universal Pension System for them.
In addition to public universities, employees working in autonomous, state-owned, and other statutory organisations, along with their subordinates, will also fall under the pension scheme, which is set to be implemented from Monday.
Public university teachers have been protesting against their inclusion in the Prottoy scheme since it was announced last March. They have vowed to continue their protest until the Prottoy scheme is withdrawn.
Meanwhile, the National Pension Authority said that they are ready to implement the scheme from Monday as per the government decision.
The government has so far launched four schemes in August last year to bring all citizens under the universal pension system.
These include the Probas scheme for expatriates, the Progoti scheme for private sector workers, the Surokkha scheme for self-employed and informal sector individuals, and the Somota scheme for low-income earners.
On 13 March, the government introduced the Prottoy scheme for employees who join public universities and other organisations that fall under the scheme from 1 July 2024 onwards. However, those who joined these institutions before 1 July 2024 will continue to receive pension benefits as before.
During the budget announcement for FY25, the finance minister stated that government employees would also be brought under the universal pension system. Those appointed to government jobs from 1 July 2025 will be compulsorily included in the Sebak scheme, which will also cover teachers at government schools and colleges. The benefits of this new scheme have not yet been finalised.
University teachers have expressed a preference for inclusion in the Sebak scheme instead of the Prottoy scheme, believing that the Sebak scheme will offer more benefits.
The Dhaka University Teachers Association argues that the Prottoy scheme creates discrimination among teachers.
The benefits in this scheme are significantly less than those in the existing pension system, leading to a disparity between new and old university teachers, which could harm teachers' self-esteem. They warn that this disparity might deter talented individuals from entering the teaching profession, thereby deteriorating the quality of education, the association says.
They also point out that the Sebak scheme is being introduced for government employees one year after teachers are included in the Prottoy scheme. If the government wanted to avoid discrimination between the two schemes, it could have included teachers in the Sebak scheme as well.
Dr Md Nizamul Hoque, president of the Dhaka University Teachers Association, told TBS that under the existing pension scheme, teachers do not need to contribute any money from their monthly salary to receive pension benefits. However, upon the launch of the Prottoy scheme, 10% of the basic salary or a maximum of Tk5,000 must be deposited.
He said, "Currently, retiring teachers receive a lump sum of Tk80 lakh-Tk81 lakh, which will not be available if they opt for the Prottoy scheme."
He further said, "Under the existing pension system, if a pensioner passes away, their spouse and children receive a lifetime pension, unlike the Prottoy scheme where no such provision exists. If a pensioner dies at the age of 75, their family will not receive any benefits. The existing pension system offers many facilities that are not available under the Prottoy scheme."
Regarding the logic behind suspending classes and exams to address their demands, he stated, "The Prottoy scheme undermines the self-esteem of university teachers. Without self-esteem, how can we effectively teach in the classroom?"
He added, "The government did not engage in any discussions with teachers before implementing this scheme. We have suspended classes to uphold our dignity. Once our concerns are addressed, we can make up for lost time with additional classes and exams."
The Dhaka University Teachers Association gave an ultimatum to the government till 30 June demanding cancellation of the Prottoy scheme.
Md Golam Mostafa, member of the National Pension Authority, told TBS, "We have included the Prottoy scheme in our system for implementation from 1 July. From now on those who will be appointed in these institutions, they will enter the job by following the decision of the government."
Meanwhile, Education Minister Mohibul Hasan Chowdhury said, "This decision is part of policy-making, so the education ministry cannot alter it or take a stance for or against it. However, the matter concerning university teachers can be revisited in the future."
What's in the Prottoy scheme?
Under the scheme, the organisation will deduct 10% of the employee's basic salary or a maximum of Tk5,000, which the organisation will match. Both amounts will be credited to the employee's corpus account. Institutions will contribute 1.67% more to the Prottoy scheme compared to the CPF.
For example, if a person contributes Tk2,500 per month for 30 years under the Prottoy scheme, they would receive a monthly pension of Tk62,330 starting from age 60. Over 30 years, the individual and their organisation would each contribute Tk9 lakh. If the individual passes away at age 75, they would receive a total pension of Tk1,12,19,400 over 15 years, equivalent to 12.47% of their contributions.
Upon reaching age 60, the employee will receive monthly pension benefits based on the principal amount deposited in their account and the accrued profits.
Participants in the Prottoy scheme, like other schemes, receive lifelong pension benefits. If a pensioner passes away before reaching 75 years of age, their nominee continues to receive pension benefits at the same rate until the pensioner would have turned 75.
The government assures that the introduction of the Prottoy scheme will not affect the interests of current employees of institutions, and their pensions or gratuities will remain unaffected.
Twelve government institutions, including public universities, have been receiving pension benefits annually without Finance Division approval. In the previous fiscal year, the finance ministry withheld pension deductions for 11 of these institutions, excluding public universities. Following discussions with the Prime Minister and the announcement of the Prottoy scheme, the finance division has cleared the pension payments for these institutions.
In the fiscal year 2021-22, around Tk689 crore was allocated from the government fund for pension payments to public universities.