Teachers at state universities suspend classes and exams and demand the withdrawal of the Prottoy program

Teachers at public universities across the country, including Dhaka University, have announced the suspension of all classes and examinations from tomorrow in protest against the government’s decision to require them to participate in the Prottoy scheme of the general pension system.

In addition to public universities, employees of autonomous, state and other statutory organizations and their subordinates will also be covered by the pension system, which is to come into force tomorrow.

Since the announcement in March last year, teachers from public universities have been protesting against their inclusion in the Prottoy program. They have said they will continue their protest until the Prottoy program is withdrawn.

Meanwhile, the National Pension Authority said it was ready to implement the program starting tomorrow, in accordance with the government decision.

The government has so far launched four programs since August last year to integrate all citizens into the general pension system.

These include the Probas programme for expatriates, the Progoti programme for private sector workers, the Surokkha programme for self-employed and individuals in the informal sector, and the Somota programme for low-income earners.

On March 13, the government introduced the Prottoy program for employees who start working at public universities and other organizations covered by the program on or after July 1, 2024. However, those who started working at these institutions before July 1, 2024 will continue to receive pension benefits as before.

During the budget announcement for fiscal year 2025, the Finance Minister stated that government employees would also be included in the general pension scheme. Individuals appointed to government positions from July 1, 2025, will be mandatorily enrolled in the Sebak scheme, which also covers teachers in government schools and colleges. The benefits of this new scheme have not yet been finalized.

University teachers have expressed their preference for inclusion in the Sebak program instead of the Prottoy program because they believe that the Sebak program offers more benefits.

The Dhaka University Teachers Association argues that the Prottoy program leads to discrimination against teachers.

The benefits of this system are significantly lower than those of the existing pension system, creating an inequality between new and old university teachers, which could damage teachers’ self-esteem. The association warns that this inequality could discourage talented people from entering the teaching profession, which would deteriorate the quality of education.

They also point out that the Sebak program for government employees will be implemented one year after teachers are enrolled in the Prottoy program. If the government wanted to avoid discrimination between the two programs, it could have enrolled teachers in the Sebak program as well.

Dr Md Nizamul Hoque, president of Dhaka University Teachers Association, told TBS that under the existing pension scheme, teachers do not have to deposit any amount from their monthly salary to get pension benefits, but with the introduction of the Prottoy scheme, they will have to deposit 10% of the basic salary or a maximum of Taka 5,000.

He said, “Currently, teachers who retire get a lump sum of 80,000 to 810,000 taka. This will no longer be available to them if they opt for the Prottoy scheme.”

He further said, “In the existing pension system, spouses and children of a pensioner receive a lifelong pension in case of death, unlike the Prottoy system where there is no such provision. If a pensioner dies at the age of 75, his family does not receive any benefits. The existing pension system offers many benefits that are not available in the Prottoy system.”

Commenting on the logic behind suspending classes and exams to meet their demands, he said: “The Prottoy program undermines the self-esteem of university teachers. How can we teach effectively without self-esteem?”

He added: “The government did not hold any discussions with teachers before implementing this plan. We have suspended classes to preserve 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 the government an ultimatum of June 30, demanding that the Prottoy programme be stopped.

Md Golam Mostafa, a member of the National Pension Board, told TBS: “We have included the Prottoy program in our system and it is planned to be implemented from July 1. From now on, those who will be employed in these institutions will take up their jobs according to the government’s decision.”

Meanwhile, Education Minister Mohibul Hasan Chowdhury said, “This decision is part of policy making, so the Education Ministry cannot change it or take a stand for or against it. However, the matter regarding university teachers can be taken up again in the future.”

What does the Prottoy schema include?

Under the scheme, the organisation deducts 10% from the employee’s basic salary or a maximum of 5,000 taka which the organisation matches. Both amounts are credited to the employee’s capital account. Institutions pay 1.67% more into the Prottoy scheme compared to the CPF.

For example, if an individual contributes Taka 2,500 per month for 30 years under the Prottoy scheme, he will receive a monthly pension of Taka 62,330 from the age of 60. Over 30 years, the individual and his organisation will each contribute Taka 900,000. If the individual dies at the age of 75, he will receive a total pension of Taka 1,121,9400 over 15 years, which is 12.47% of his contributions.

Upon reaching the age of 60, the employee receives a monthly pension payment based on the capital sum paid into his account and the accrued profits.

Participants in the Prottoy program receive lifetime pension benefits, as in other programs. If a retiree dies before reaching age 75, his or her beneficiary will continue to receive pension benefits at the same level until the retiree would have reached age 75.

The government assures that the introduction of the Prottoy program will not affect the interests of the institutions’ current employees and that their pensions or severance payments will remain unaffected.

Twelve government institutions, including state universities, were receiving pension payments annually without the approval of the Finance Department. In the last fiscal year, the Finance Ministry withheld pension payments for eleven of these institutions, excluding state universities. After discussions with the Prime Minister and the announcement of the Prottoy Scheme, the Finance Department has released pension payments for these institutions.

In the financial year 2021-22, around Taka 689 million was allocated from the government fund for pension payments to public universities.