Uni teachers’ protest against pension scheme unreasonable: FinMin
He was talking to reporters after a meeting with Asian Development Bank Vice President (South, Central & west Asia) Yingming Yang.
The ongoing strike by university teachers protesting the inclusion of new recruits in the Prottoy pension scheme is unreasonable, Finance Minister Abul Hassan Mahmood Ali said today (2 July).
He, however, declined to make further comments regarding the matter.
He was talking to reporters after a meeting with Asian Development Bank Vice President (South, Central & west Asia) Yingming Yang.
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Teachers at 35 public universities nationwide started an indefinite strike on Monday, suspending all academic activities and demanding the withdrawal of the Prottoy scheme.
They unitedly announced that they would continue their indefinite strike and would not return to classes until their demands were met.
Meanwhile, the finance ministry yesterday issued clarifications on the Prottoy Scheme.
Prottoy is designed to include employees of self-governed, autonomous, state-owned, and statutory organisations under the Universal Pension Scheme and aims to establish a sustainable pension system for all citizens, reports BSS.
Currently, 403 such organisations exist, with around 90 maintaining pension systems, while others follow the Contributory Provident Fund (CPF) system, which provides lump sum gratuities but no pensions.
Introduced on 13 March, the new scheme seeks to rectify this by ensuring comprehensive pension coverage.
Under Section 14(2) of the Universal Pension Management Act, 2023, the scheme mandates that all employees joining these organisations from 1 July 2024, will be included in the Prottoy scheme.
The ministry clarified that existing employees will retain their current pension plans.
A new system is established where both employees and their organisations contribute to individual pension accounts. This approach aims to lessen the government's long-term financial responsibility for pensions, the ministry explains.
The Prottoy scheme promotes social security, financial inclusion, and broader development.
Existing pension benefits remain for university teachers appointed before 1 July 2024. Newly recruited teachers will be subject to the Prottoy scheme.
While the overall pension age is 60, university teachers will continue to receive pensions from age 65, their standard retirement age, until legal adjustments are made.
Current lump sum payments, provident funds, and other existing benefits will not be affected. Monthly pensions will be prioritised over one-time gratuities. Contributions are expected to generate substantial returns over time.
The Prottoy scheme offers lifetime pensions for both the beneficiary and their spouse/nominee, ensuring long-term financial security and a more inclusive social security framework for all, the ministry says.
