Dispute clouds MPO retirement payouts
Over 114,000 applicants await retirement and welfare dues as teacher leaders question proposed payment method.
The government is set to begin disbursing retirement and welfare benefits to retired teachers and employees of MPO-listed private educational institutions from August 15, but disputes over the payment method have raised fresh uncertainty over whether beneficiaries will receive their full entitlements.
The Retirement Benefit Board and the Teachers’ and Employees’ Welfare Trust are scheduled to launch the disbursement process simultaneously across all 64 districts.
However, teachers, employees and their representatives have expressed dissatisfaction with the proposed mechanism.
Md Zakir Hossain, secretary general of the Teachers and Employees Unity Alliance, told The New Nation that the planned process went against the interests of teachers and employees.
“The process through which the funds are set to be disbursed runs counter to the interests of the teaching community,” he said, adding that it also violated existing rules.
Teacher leader Zakir Hossain demanded that payments be made to teachers in accordance with the law enacted by former Prime Minister Begum Khaleda Zia.
Several retired teachers, speaking on condition of anonymity, said they expected to receive between Tk 30 lakh and Tk 35 lakh under the existing benefit structure.
They argued that receiving only accumulated contributions amounting to Tk 3 lakh to Tk 4 lakh and treating the payment as a final settlement would be unacceptable.
They warned that teachers across the country could launch a movement if their full benefits were not guaranteed.
The teachers also demanded a clear payment roadmap, including settlement of dues for around 12,000 beneficiaries in the current phase and 20,000 in the next fiscal year, until the backlog is cleared.
Tk 2,000cr special allocation
Education Ministry sources said the government had provided a special lump-sum allocation of Tk 2,000 crore for the initiative.
Around 70,000 retired teachers and employees whose applications are pending with the Retirement Benefit Board and another 44,000 applicants under the Welfare Trust are expected to be brought under the programme.
Altogether, around 114,000 retired teachers and employees have pending claims.
The government plans to transfer money directly to beneficiaries’ bank accounts through the iBAS++ system, eliminating the need for brokers or middlemen.
Secondary and Higher Education Division Secretary Md Abdul Khaleque said retired teachers and employees had suffered for years because of delays in receiving their dues.
“The government has taken this special initiative to reduce their hardship. Direct transfer to bank accounts will ensure transparency in the process,” he said.
Thousands of applications pending
According to the Retirement Benefit Board, applications submitted by teachers and employees who retired between January 2022 and June 2026 are now being processed.
Around 70,115 applications are expected to be handled during the current phase.
Retirement benefits are calculated on the basis of contributions deducted at 6 percent of basic salary during service. Board estimates suggest that payments under the contribution-based calculation could reach around Tk 5 lakh per beneficiary.
Officials estimate that about Tk 1,500 crore will be required to process the pending retirement benefit applications in the current phase.
Meanwhile, the Welfare Trust is processing around 44,000 applications submitted between April 2023 and June 30, 2026.
Teachers and employees contribute 4 percent of their basic salary to the welfare scheme.
Depending on the contribution period, a retired teacher or employee may receive between around Tk 50,000 and Tk 2.5 lakh under the welfare benefit calculation.
Officials estimate that processing these applications will require around Tk 600 crore.
Tk 12,000cr needed to clear backlog
More than 114,000 applications are currently pending with the two bodies, while around Tk 12,000 crore would be needed to fully clear the backlog, according to officials familiar with the matter.
Of the total, around Tk 9,000 crore would be required to settle approximately 70,000 applications pending with the Retirement Benefit Board, while more than Tk 3,000 crore would be needed for the roughly 44,000 applications awaiting settlement at the Welfare Trust.
A significant portion of the funds comes from deductions from teachers’ and employees’ salaries.
Six percent of basic salary is deducted for retirement benefits and another 4 percent for welfare benefits.
In addition, Tk 100 is collected annually from each student, of which Tk 70 goes to the retirement fund and Tk 30 to the welfare fund.
Officials said income generated by the funds remains insufficient to meet the volume of applications submitted every month, resulting in a persistent deficit and growing backlog.
Technical problems add to delays
Officials at the Retirement Benefit Board said the digital verification process had also been disrupted after the authorities lost control of legacy software previously used to process applications.
As a result, many applications now require manual verification, further delaying settlements.
Education Ministry sources said the education minister is expected to provide detailed information on the initiative at a press conference on August 13.
The nationwide disbursement process is scheduled to begin two days later, on August 15.
Despite the initiative, however, uncertainty remains over how quickly the accumulated dues will be cleared and whether beneficiaries will ultimately receive the full amounts they claim under existing regulations.
