Govt yet to decide on early retirement age
Government in 2017 announced that it was looking at offering early retirement packages for civil servants as one of the solutions to cut the wage bill.
Government has not yet taken a decision on changing the early retirement age for civil servants, the secretary to cabinet, George Simataa, has said.
Government would not change the early retirement age until the matter was thoroughly investigated and consultations with relevant stakeholders have been undertaken, Simaata said in a statement last week.
He was responding to a story in a local media saying government's early retirement and retrenchment plans for civil servants might lead to the Government Institutions Pension Fund (GIPF) being unable to pay out benefits when the number of beneficiaries increases.
Government in 2017 announced that it was looking at offering early retirement packages for civil servants who wish to retire before the age of 60 as one of the solutions to cut the wage bill.
Independent study
Thursday’s statement said an independent study recommended that government should investigate the possibility of reducing the early retirement age from the current 55 years to 50.
“The investigation is not yet completed. It requires rigorous consideration due to its multiple implications, including to the current pension framework in the country,” it said.
Simataa added that government was investigating different options that could assist the country to overcome current economic and financial challenges.
“In doing so, all policies, practices and systems that are hampering effectiveness and inefficiency are also being investigated to improve efficiency and governance effectiveness.”
Simataa said government is however committed to approaching the matter in a systematic and comprehensive way, while observing all provisions of the law and considering the need for financial sustainability. - Nampa
Government would not change the early retirement age until the matter was thoroughly investigated and consultations with relevant stakeholders have been undertaken, Simaata said in a statement last week.
He was responding to a story in a local media saying government's early retirement and retrenchment plans for civil servants might lead to the Government Institutions Pension Fund (GIPF) being unable to pay out benefits when the number of beneficiaries increases.
Government in 2017 announced that it was looking at offering early retirement packages for civil servants who wish to retire before the age of 60 as one of the solutions to cut the wage bill.
Independent study
Thursday’s statement said an independent study recommended that government should investigate the possibility of reducing the early retirement age from the current 55 years to 50.
“The investigation is not yet completed. It requires rigorous consideration due to its multiple implications, including to the current pension framework in the country,” it said.
Simataa added that government was investigating different options that could assist the country to overcome current economic and financial challenges.
“In doing so, all policies, practices and systems that are hampering effectiveness and inefficiency are also being investigated to improve efficiency and governance effectiveness.”
Simataa said government is however committed to approaching the matter in a systematic and comprehensive way, while observing all provisions of the law and considering the need for financial sustainability. - Nampa
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