Recently, Bangladesh's public universities have ground to a halt as teachers and staff strike against the new Prottoy Universal Pension Scheme. While the government touts this as a step towards a sustainable pension system, closer examination reveals a flawed policy that risks damaging the quality of higher education and exacerbating the country's brain drain crisis.
The Prottoy scheme, launched on July 1 this year, is designed to bring people from all walks of life into a sustainable pension system. It applies to new recruits from July 1 in various public sector organisations, including autonomous, self-governing, nationalised, and statutory institutions. The scheme has sparked widespread protest among academics, and their concerns are not without merit.
Under Prottoy, 10 percent of an employee's basic salary, up to a maximum of Tk 5,000, whichever is lower, will be deducted for the pension fund. The employing organisation will contribute an equal amount. These funds will be managed by the National Pension Authority and invested in profitable sectors. While the government argues this will create a robust pension fund, it represents a significant cut in take-home pay for already underpaid academics.
One of the most glaring issues is the elimination of the lump-sum gratuity payment. Under the current system, retiring employees receive a substantial one-time payment—40 percent of their last pay multiplied by 200—crucial for managing unforeseen expenses or medical emergencies in old age. The Prottoy scheme replaces this with purportedly higher monthly instalments, but fails to address the need for a financial safety net.
The government claims Prottoy will offer higher monthly payouts in the long run. However, this fails to account for the loss of the five percent annual increment on pension amounts present in the current system. When factoring in inflation, the real value of these payouts may actually decrease over time, leaving retirees worse off.
Another concerning aspect is the change in benefits for dependents. Under Prottoy, in case of the pensioner's death, dependents can claim the pension for only 15 years from when the instalment starts, rather than for a lifetime as per the current scheme.
Perhaps most telling is the exemption of bureaucrats, judiciary, and military personnel from the scheme. If Prottoy is indeed superior, why are these groups excluded? This selective application smacks of inequality and raises valid concerns about potential discrimination in benefits.
The timing of this reform is particularly troubling given Bangladesh's ongoing struggle with brain drain. Despite a doubling of universities in the past 15 years, the number of students seeking education abroad has tripled. According to UNESCO data, at least 49,151 Bangladeshi students went abroad to study in 58 countries in 2022, up from 16,609 in 2008. This exodus of talent is driven by factors including poor quality of higher education, political uncertainties, limited employment opportunities, and lack of social and financial benefits in the country.
The impact of this brain drain is already visible in our universities. As one economics graduate from the University of Dhaka recounts, courses were dropped during their final year due to a lack of teachers, as the senior ones are not currently residing in the country and younger ones are pursuing their PhDs abroad. This shortage of qualified educators not only compromises the quality of education but also creates a vicious cycle, as fewer students are inspired to pursue academic careers.
The consequences extend beyond the classroom. Every year, Bangladesh produces brilliant engineers from public universities, financed by the taxpayers of our country. Yet, when major development projects are undertaken, the country often needs to hire foreign engineers because our homegrown talent has left for greener pastures. This not only represents a significant economic loss but also hampers the country's technological and infrastructural progress.
Moreover, the medical sector faces similar challenges. Many of Bangladesh's top medical graduates leave for higher-paying positions abroad, leaving a gap in specialised healthcare services within the country. This exodus of healthcare professionals is particularly concerning given the ongoing global health challenges.
By potentially making the teaching profession less attractive, the Prottoy scheme risks exacerbating these issues. If we fail to retain our brightest minds in academia, we risk a domino effect that could impact every sector of our economy and society.
While pension reform may be necessary to address budgetary concerns, the Prottoy scheme appears to be a hasty, top-down solution that fails to consider the long-term consequences for Bangladesh's education system and economy. The government's refusal to engage in meaningful dialogue with academics reveals a short-sighted approach to policy-making.
To truly address the challenges facing Bangladesh's higher education system and stem the tide of brain drain, the government must prioritise creating an environment that attracts and retains top talent. This means competitive salaries, robust benefits, and a pension system that provides genuine security in retirement.
The Prottoy scheme, in its current form, risks undermining these goals. It's time for the government to pause, listen to the concerns of educators, and work collaboratively towards a pension solution that serves both fiscal needs and the long-term interests of Bangladesh's academic community. By doing so, we can not only improve our education system but also fuel innovation, boost economic growth, and secure a brighter future for the nation.
Failure to address these concerns may result in a pension "reform" that costs the country far more than it saves.