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HomeNewsState to pay K30m for 2,215 public servants retirees

State to pay K30m for 2,215 public servants retirees

THE government has continued to honor its commitment to pay out Public Servants through the Public Service retirement exercise.

Public Service Minister Joe Sungi confirmed  recently the government has paid out 37 public servants on pay 17 (27th August) as part of the first batch of retirees for 2021, who have reached compulsory retirement age and others who are being retired on medical grounds.

The Public Service Minister said, following National Executive Council Decision’s 304/2016 & 71/2017 as part of cost saving measures, the Department of Personnel Management has been progressing calculations to payout public servants under this retirement exercise.

The Department of Personnel Management & Treasury staff have been working tirelessly behind the scenes to ensure file checks and system inputs including validation is being done to progress the respective batches of staff from various agencies who will be retired in order for retirees to sign off on their Deed of Releases. For this year a total of 2, 115 public servants will be paid out as per the table below;

Retirees from the first batch who have been paid out are from agencies that include national departments, provincial administrations, provincial health authorities and state owned enterprises.

Minister Sungi contends that the retirement exercise is in line with the government’s move to ensure all public servants who have reached the compulsory retirement age are paid out.

Many of whom have remained on the government payroll despite being out of the public service awaiting their payout.

“The payout of retirees has been a long outstanding issue but I am pleased that the government is able to pay them out to free up the Governments Ascender Payroll system which will enable saving about over half a million in the remainder of this year after pay 17.

“We are looking at making more savings when the other 2 batches are paid out before the end of the year.”

Minister Sungi said, as part of the Public Sector Reforms and the need to control costs in the Public Service Payroll, DPM is doing all it can to clear the Ascender Payroll through the payout of Public Servants who have reached retirement age but have remained on the payroll over the years.

“This is a great achievement for the Marape-Basil government in its efforts to cut the Public Service wage bill and the commitment this government has made to the Public Sector Reforms on improving and modernizing the public service by honoring this commitment.”

The government has also paid the state component of superannuation for the retirees which they will be receiving immediately upon payout.

“On behalf of the Marape Basil government, I would like to take this opportunity to thank all retirees for their services and contributions to the development of the country. I encourage you all to use your payouts wisely for the well-being of your families,” Mr Sungi said.

The Public Service Minister has also urged line agencies to identify and submit list of their staff who have reached compulsory retirement age to DPM to ensure they are paid out under this retirement exercise.

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