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Civil servant resignations before entering pension scheme not true says Finance Minister

June 17, 2023
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The finance minister says it is not entirely true that civil servants resign before entering the pension scheme. The minister was responding to the Dewathang-Gomdar MP Ugyen Dorji, who during the Question Hour session of the National Assembly yesterday, asked the government whether it would consider reforming the pension scheme.

According to Dewathang-Gomdar MP, most civil servants resign because they do not want to enter the pension scheme and opt for early retirement.

“Upon resigning, civil servants do not get the total accumulated amount right away. They get the provident fund right away whereas a pension is only admissible at the age of 57. In this, only 10 per cent is provident fund and 16 per cent is in pension. This is where the problem arises.”

A civil servant enters the pension scheme after 20 years in service. However, they have to wait until they attain the age of 57 to get their pension. This according to the Dewathang-Gomdar MP discourages civil servants from entering the pension scheme.

However, finance minister Namgay Tshering said data shows that civil servants resigning before entering the pension scheme is low. The minister also added that the maximum number of civil servants resigning are those who have less than five years experience.

“As per my record, last year, 2400 civil servants resigned, and among that, only 96 or four per cent are the ones who attained 19 years in service. 60 per cent are the ones who did not attain even 10 years. That is why it is important that we look into the record.”

According to the finance minister, a committee was formed under the NPPF to bring reformations to the pension and provident fund scheme.

He added that the works are nearing completion and the government will soon discuss on it.

Ugyen Dorji

Edited by Sherub Dorji

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