Dhaka: The interim government has promulgated a significant ordinance, introducing major amendments to the existing law to enhance the transparency and effectiveness of retirement benefits for thousands of MPO-listed teachers and employees in private educational institutions across the country. This move aims to make the system more dynamic and inclusive.
According to Bangladesh Sangbad Sangstha, the new ordinance, named the Private Educational Institution Teachers and Employees Retirement Benefits (Amendment) Ordinance, 2026, was announced by the Legislative and Parliamentary Affairs Division of the Ministry of Law, Justice and Parliamentary Affairs. Public Relations Officer Dr. Md. Rezaul Karim confirmed that the ordinance was published in the gazette form on Monday and is set to take immediate effect.
The amendments include the incorporation of ‘Ebtedayi Madrasa’ and introduce radical changes in the ‘Board of Directors’ and ‘Funds’ management. Notably, the ordinance provides an interim arrangement to ensure the payment of dues to teachers even in the absence of a functioning board.
The ordinance revises the definition and scope of the existing law, amending Section 2 of the original 2002 Act to include the term ‘institution’ with MPO. It also expands coverage to include Ebtedayi Madrasas affiliated with Dakhil and higher levels.
A significant restructuring of the Retirement Benefits Board’s governing council is also part of the ordinance. The secretary of the Secondary and Higher Education Division will chair the council, while the Director General of the Directorate of Secondary and Higher Education will act as the vice-chairman. Furthermore, a director will be appointed as the ex-officio ‘Member-Secretary’ of the Board, as stipulated in Section 6(1)(m) of the Act.
The ordinance introduces representatives from various departments, including Public Administration and Finance, and appoints 11 teachers and three employees nominated by the government as members. These nominated members will serve three-year terms.
An important change in the ordinance is the emphasis on ‘approval’ rather than ‘granting’ retirement benefits. It also outlines that, in the absence of a board, retirement benefits can still be provided to teachers and employees with government approval.
Furthermore, the ordinance mandates that the board’s permanent fund be invested exclusively in state-owned commercial banks, government bonds, or bills, with government approval required. The fund’s money is restricted from being spent on any other board activities, and its management method will be regulated.
The ordinance also provides for appointing the necessary officers and employees according to the organizational structure approved by the government to facilitate the Board’s operations. As per Section 12(2) of the amended Act, a ‘Director’ will oversee the administrative activities of the Retirement Benefits Board, with an officer appointed by the government to implement the Board’s decisions on deputation.