Govt praised for retirement funds

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DEPARTMENT of Personnel Management secretary Taies Sansan has commended the Government for allocating funds for the retirement of 2,150 public servants in the budget.
Sansan told The National that those public servants were over 65 years old and due for retirement.
She said the total cost of the retirements would be about K430 million.
“That includes their final entitlements plus the Nambawan Super benefits,” Sansan said.
“Based on calculations, the 2020 allocation is enough for the 2,150 public servants.
“While we were planning on that, the National Executive Council had approved the five-year retirement strategy.”
Sansan said a team would be put in place with her department heading that committee comprising officials from Treasury, Finance, Health and Education.
“We will work out the calculations and start paying people commencing in 2020.
“I am very happy because the retirement funding had been included in the 2020 budget.
“It’s good news that these funds were made available and the retirees will be paid out.
“We look forward to retiring those 2,150 public servants so we clean the payroll and the following year, 2021, the next lot of retirees would be paid out.
Sansan said the only outstanding matter now was the 3 per cent pay increase for this year that would be paid next year.
“These are state obligations, those contracts have been signed with state and the Government is honouring that so I am very thankful of the steps it is taking.
“These good public sector reform exercises that are ongoing and I’ve issued a special general order last month and it is part of the cost-saving.
“While the Government is helping the department to get rid of state liabilities, we are also looking at the public service cost-cutting exercise.”

5 comments

  • Public servants must be undergo pre-retirement financial education before being paid. This will help them manage and invest their retirement funds wisely. Otherwise, they will spend everything and end up in poverty during old age.

  • Sure, David, if taxed twice then for what? Immoral and unethical to tax twice.

    Listen to what God says about cheating!

    Malachi 3:5
    And I will come near to you to judgment; and I will be a swift witness against the sorcerers, and against the adulterers, and against false swearers, and against those that oppress the hireling in his wages, the widow, and the fatherless, and that turn aside the stranger from his right, and fear not me, saith the LORD of hosts.

    Jeremiah 22:13
    Woe unto him that buildeth his house by unrighteousness, and his chambers by wrong; that useth his neighbour’s service without wages, and giveth him not for his work;

    Taking Back PNG has to do with doing what is right by God!

  • These public servants have be paying taxes all their lives. For their final pay out the government must not tax these benefits. Let them get their entitlements and retire back to their villages happily.

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