The Finance Ministry has clarified that the government decided to discontinue monthly allowances to newly retiring staff from government agencies and companies with private pension schemes, to avoid ‘double pensions’.
A letter sent to state agencies signed by the Finance Minister and National Pay Commission’s President Moosa Zameer instructed government entities with their own retirement scheme to cease monthly payments to pensioners effective January next year.
The ministry explained that bulk payments and monthly payments based on years of service under private pension schemes, in addition to payments from the basic pension scheme constitute as ‘double pension’. The government had previously received recommendations to amend the pension system such that double payments are avoided, the ministry said.
The directive affects 13 state agencies that have their own pension schemes, including the MNDF, police, and judiciary.
