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Establishment Division Objects Pension Reforms

Establishment Division Objects Pension Reforms.

The Establishment Division raises concerns over proposed changes to the pension system, highlighting potential disadvantages for government employees.

The feedback, directed to the Finance Division, addresses worries about the escalating burden of pension payments on the national budget.

The Finance Division suggests a gross pension model based on 70% of the average pensionable emoluments over the last 36 months of service.

However, the Establishment Division argues that this might adversely impact employees promoted in their last year of service, limiting the full benefit of their higher salary scale in pension calculations.

The suggested formula could lower the average value of pensionable emoluments, incorporating lower salaries from previous years, potentially diminishing pension amounts for government employees.

The Establishment Division challenges the proposed 3% pension reduction for early retirement, advocating for empirical evidence and consideration of valid reasons. It urges the removal of the irrelevant annual pay increase proposal from the notification.

As an alternative to reduce pension liabilities, the Establishment Division suggests raising the retirement age to 62, emphasizing its positive impact on government employees’ morale.

The Pay and Pension Commission’s recommendations aim to address the escalating pension costs, projected to exceed Rs1 trillion. The Ministry of Defence echoes concerns, urging the Finance Division to avoid discrimination against retired armed forces personnel in the pension reforms.

A high-ranking government official, preferring anonymity, suggests implementing performance-based and task-oriented promotions, commonly referred to as accelerated promotions, for government employees.

Advocating for a system that rewards exemplary performance with increased salaries, the official emphasizes the need to foster overall improvement in government department efficiency.

The official expresses concern over the prevalent practice of overlooking hardworking junior officers for promotions, attributing it to reliance on seniority or the retirement of superiors.

Criticizing the lack of accountability in promotions, the official highlights the inadequacy of Departmental Promotion Committee meetings, asserting that even underperforming public servants secure promotions.

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