Staff Reporter

The long wait for retirement and welfare benefits may soon ease for retired teachers and employees of MPO-listed private educational institutions, as the government plans to release partial payments to a large number of applicants this August.

In the first phase, the authorities plan to pay an amount equivalent to the contributions deducted from teachers and employees during their service. Under the initiative, applicants may receive up to Tk 450,000 in retirement benefits and up to Tk 239,000 in welfare benefits, although the actual amount will vary depending on their position and salary grade.

Applicants who submitted their retirement benefit claims by July 31 and welfare benefit claims by June 30 will be eligible for payment in this phase.

According to সংশ্লিষ্ট sources, around Tk 12 billion will be required to settle 70,119 retirement benefit applications. Another Tk 5.65 billion has been allocated for 53,477 welfare benefit applications.

As teachers and employees are generally entitled to both retirement and welfare benefits, the combined 123,596 applications do not represent the actual number of individual beneficiaries.

Contributions to Be Paid First

According to sources at the two concerned institutions, most of the initial payments will come from contributions made by teachers and employees during their service.

For retirement benefits, 6% of basic salaries was deducted, while 4% was deducted for welfare benefits. These rates were applicable until 2019. Previously, the rates were 4% and 2%, respectively.

Officials said the initial payments would be made from the funds currently available in the retirement and welfare benefit schemes. The remaining dues are expected to be paid gradually as additional funds become available.

Mohammad Mosharraf Hossain, secretary of the Retirement Benefit Board, said almost all applicants would receive the portion equivalent to their contributions in this phase. The remaining dues would be paid later when sufficient funds become available.

Teachers Seek Full Payment

More than 600,000 teachers and employees work at MPO-listed private educational institutions across Bangladesh. Many retirees have had to wait for years to receive their retirement and welfare benefits after leaving service.

The decision to make partial payments has therefore been welcomed as a relief by retired teachers and employees. However, they also want the government to ensure that the remaining dues are paid as soon as possible.

Benefits Vary by Salary Grade

According to calculations by the relevant authorities, a principal in the highest grade may be entitled to around Tk 3.8 million in total retirement benefits, of which approximately Tk 450,000 represents his or her own contributions. The total welfare benefit may exceed Tk 2 million.

A secondary school assistant teacher, meanwhile, may receive around Tk 1.7 million in retirement benefits, including approximately Tk 200,000 from personal contributions. The total welfare benefit for such a teacher may be around Tk 690,000, including approximately Tk 77,000 in contributions.

The amount is lower for employees.

Students also contribute Tk 100 annually, with Tk 70 going to the retirement benefit fund and Tk 30 to the welfare fund. The remaining funds are generated through government allocations and interest earned on money deposited in banks.

Officials hope that the start of partial payments will ease some of the financial uncertainty faced by retired teachers and employees, while the remaining dues can be settled gradually.