CSC: Illogical for retired civil servants to take on other govt. jobs

Civil Service Commission (CSC) President Mohamed Nasih has criticized the practice of retired civil servants taking on other government jobs, calling it illogical and emphasized the need for a legal fix.

The Parliament is currently working to address the issue of double pensions, with the Public Accounts Committee meeting CSC members on Monday as part of these efforts.

Speaking during the meeting, Nasih said civil service accounted for the majority of government jobs with some 35,000 employees.

He detailed that the Commission has arranged retirement benefits for 5,336 employees as of March, from 2008 onwards. They include 1,612 people who retired at 55 and 3,626 people who retired at 65.

Nasih pointed out that other institutions besides civil service have policies on retirement upon turning 55.

“Upon turning 65, pension is awarded based on a contributory amount under the contributory scheme in the Pension Act. [The law] is formulated in a manner that they also receive the retirement benefits awarded by us, civil Service as well. I think that is what some people mean by double pension,” he detailed.

Nasih pointed out that pensions are meant to be granted only upon retirement, yet some retired civil servants take up roles in other government institutions outside the civil service. He emphasized that while these individuals are barred from returning to civil service roles, the regulations of other institutions differ, allowing them to bypass the restriction.

He slammed this as extremely illogical and emphasized the need for a legal fix.

“As I believe, the purpose of retirement is not work. Not saying it can’t be done privately. However, we do not believe it is logical to taken on a government job while receiving a retirement benefit from a government institution,” he said.

Speaking at the Committee, Maldives Pension Administration Office (MPAO) said approximately MVR 100 million is incurred for pension distribution, with the sum expected to exceed by seven percent by 2030. The Office stressed that this was not a sustainable expense for the state.

The issue of double pension was raised at the Public Accounts Committee by Deputy Speaker and Dhiggaru MP Ahmed Nazim, who claimed that the government has spent MVR 2.96 billion on pensions over the past 13 years. As such, he underscored the need for the Parliament to take initiative to resolve the double pension issue.

The issue of double pension has been long since highlighted by various financial institutions, while an Auditor General’s Office report in 2015 had recommended taking measures in eliminating the practice at the earliest possible date.

Besides this, both the World Bank and International Monetary Fund (IMF) had recommended discontinuing double pensions to accentuate the government’s continued efforts for sound fiscal sustainability.

The current administration, in December last year, announced its formal decision to eliminate double pension, but later reneged.