Lebanon's syndicate of private school teachers has threatened to suspend the upcoming academic year over demands related to the pension fund.

The pension fund, which is contributed by students, teachers and schools, was severely degraded by the ongoing economic crisis and the collapse of the Lebanese lira. 

The head of the syndicate, Nehme Mahfoud, told L'Orient Today that schools have been paying their contribution to the pension fund at the dollar exchange rate of LL 1,500, leading to the "collapse of the fund." 

The official adjustment of lira's exchange rate against the U.S. has lagged well behind its parallel market rate over the last five years. In February 2023, the Lebanese authorities modified the official rate, fixing it at LL 15,000 to the U.S. dollar, a significant increase from the longtime pegged rate of LL1,500 but still significantly below the parallel market rate. While the exchange rates for some taxes were adjusted separately during the following months, it was only when the last budget law was passed in January this year that the official rate became fully aligned to the market rate.

Yet, public sector salaries have so far been adjusted at a lower level, equivalent to seven to nine times their pre-crisis level, while the market rate has multiplied by a factor of 60 during that same period.

In December, the Lebanese Parliament passed a law that amended the 1956 law governing the teaching staff and public schools budget so that the contributions made by educational establishments to the fund are paid in dollars and amount to eight percent of each teacher’s salary, including incentives in dollars.

Mahfoud said that the law, approved by Parliament, has not yet been published in the Official Gazette by caretaker Prime Minister Najib Mikati. 

He added that if Mikati does not publish the law in the Official Gazette and the schools keep contributing the same amount to the fund, "the school year won't start."

Contacted by L'Orient Today, Mikati's spokesperson Fares Gemayel said that the issue related to the teachers' pension fund is under review and there will be a meeting next week in this regard.

Catholic schools have previously strongly opposed the law and threatened to go on an open strike to demonstrate their opposition. 

"Contributions to all pension funds in the country have increased as Lebanon's economy is now dollarized except the pension fund for teachers of private schools," Mahfoud told L'Orient Today.

"How will teacher retirees be able to live?" he asked.

Public school teachers are also still suffering the consequences of the economic crisis, with many claiming their present salaries are insufficient even to cover the cost of transportation to get to the schools in which they teach.