To ensure a pension and provident fund that is up-to-date, inclusive and autonomous, the National Council’s Good Governance Committee is proposing a National Pension and Provident Fund Act. The proposal also follows the lukewarm response the House received to its recommendations.
During the summer session, the National Council deliberated on the national pension and provident fund and forwarded 10 recommendations to the NPPF and the Finance Ministry for implementation.
The recommendations included strengthening NPPF governance, establishing a legal framework, improving pension benefits and enhancing retirement security. They also called for greater financial literacy, fairer provident fund contributions for contract employees, more flexible retirement benefits and pension adjustments to address inflation and the rising cost of living.
However, while the Finance Ministry and the NPPF acknowledged the recommendations, they said several would require further review, legal changes, government approval and adequate funding before implementation.
The Good Governance Committee said the responses did not indicate what actions were being taken to address the recommendations.
Chairperson of the Good Governance Committee, Rinzin Namgay, said the government should prioritise the issue and introduce a dedicated NPPF Act. He said the National Council could also take the initiative as one of the country’s law-making houses if the government was unable to do so.
However, some National Council members called for the government to first review and implement the recommendations before moving towards a new Act.
Saprang MP Pema Tashi said the government should acknowledge and act on even smaller recommendations to strengthen social security. He also called for the government to review the recommendations already submitted by the National Council.
Trashigang MP Sonam Tobgay questioned why recommendations that the Finance Minister had earlier said would be addressed immediately had been deferred for future implementation. He also asked whether the committee had approached the minister to clarify the concerns.
With no specific timeline for implementing the recommendations, the committee chairperson directed the Cabinet Secretariat to follow up with the relevant authorities for updates and an implementation timeline.
The National Council is expected to receive the updates during the current session and continue its deliberations on the pension and provident fund.
Sangay Chozom & Singye Dema
Edited by Sonam Wangdi
