Retired teachers left waiting
The Retirement Benefit Board for Teachers and Employees of Non-Government Educational Institutions is grappling with a severe financial crisis, leaving tens of thousands of retired teachers and staff waiting years to receive their retirement benefits.
According to board sources, nearly Tk 700 crore belonging to teachers and employees remains tied up in nine private commercial banks, worsening the Board’s cash flow and delaying payments to beneficiaries.
Officials said the Board is preparing to seek financial support from the Prime Minister to bridge the widening funding gap. While the retirement fund currently holds around Tk 2,000 crore, an additional Tk 8000 crore is urgently required. Overall, nearly Tk 1,0000 crore is needed to clear the outstanding retirement payments.
The financial strain has also affected the Teachers and Employees Welfare Trust, where a shortage of funds has significantly slowed the processing of applications.
As a result, retired teachers and employees now wait an average of two and a half years to receive their retirement and welfare benefits.
An official of the Retirement Benefit Board, speaking to The New Nation on condition of anonymity, said many retired teachers were facing severe hardship because they were unable to access their benefits when they needed them most.
“Some are struggling to meet basic household expenses, including medical costs, as their retirement payments are delayed for years,” the official said.
The extent of the crisis was also highlighted in Parliament last month.
Responding to a starred question from opposition Jamaat-e-Islami MP Md Abdul Wares (Gaibandha-5) on 28 June, Education Minister A.N.M. Ehsanul Haque Milan said 67,000 applications for retirement benefits were pending with the Retirement Benefit Board.
The minister reaffirmed the government’s commitment to ensuring the timely payment of retirement and welfare benefits to retired teachers and employees of non-government educational institutions.
He informed Parliament that the average retirement benefit paid to each teacher or staff member is around Tk 13 lakh. Meeting the outstanding claims would require approximately Tk 8,710 crore, while the retirement fund currently holds only about Tk 1,300 crore, leaving a funding deficit of roughly Tk 7,410 crore.
The minister also disclosed that around 45,000 applications had accumulated at the Non-Government Educational Institution Teachers and Employees Welfare Trust between August 2023 and 21 June this year. Clearing those applications would require a one-off allocation of around Tk 3,150 crore.
He said the government had already initiated measures to address the financial difficulties faced by both the Retirement Benefit Board and the Welfare Trust by arranging the allocation of additional funds.
Alongside financial support, the government is implementing a series of administrative reforms aimed at reducing delays in benefit payments.
These measures include relaunching the application processing software, increasing manpower, expanding online services and introducing direct transfers of retirement and welfare benefits to teachers’ and employees’ bank accounts through the Integrated Budget and Accounting System (iBAS++).
Officials hope the initiatives will help shorten the lengthy processing time and improve service delivery for retired beneficiaries.
Md. Mosharraf Hossain, Secretary of the Retirement Benefit Board for Teachers and Employees of Non-Government Educational Institutions, told The New Nation that the Board is working to recover the funds through ongoing communication with the banks concerned, adding that a couple of banks have already assured it of their cooperation.
He said the government allocated Tk 2,000 crore last month for the purchase of bonds. The Board has prepared around 8,500 files covering applications submitted between January and December 2022, and formal disbursement will begin once the necessary approval is received.
He further alleged that the previous government left the Board’s operations in disarray, including damage to its website and digital systems. As a result, officials have had to process applications manually, contributing to the prolonged delays in settling retirement benefit claims.
The Retirement Benefit Board was established under the Retirement Benefit Act for Teachers and Employees of Non-Government Educational Institutions, 2002 (Act No. 27 of 2002). The Retirement Benefit Scheme was subsequently introduced through the 2005 Regulations framed under Section 15 of the Act.
Under Sub-regulation 10(1) of the 2005 Regulations, retirement benefits are payable to retired teachers and employees of MPO-listed non-government educational institutions.
Despite the government’s reform initiatives, education sector stakeholders say the growing backlog and widening funding gap underscore the urgent need for sustained financial support to ensure retired teachers and employees receive their entitlements without prolonged delays.
