Government is taking the lead to reform the current pension system by abolishing the contribution to the National Pension Fund (NPF), while continuing to pay benefits to each and every one who has previously contributed to this fund.
The Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, made this statement, today, in the National Assembly, in reply to a Private Notice Question pertaining to the pension reform.
Dr Padayachy highlighted that prior to the introduction of a contributory, participative and collective system, the Contribution Sociale Généralisée (CSG), a High-Level Committee on pension reform had already been set up since 2016 which is composed of members of both public and private organisations.
Furthermore, Dr Padayachy, underscored that despite the lockdown in the wake of the Covid-19 pandemic, discussions regarding the reform of the pension system with relevant stakeholders were ongoing. He added that the Ministry of Finance had proposed to institutional actors and civil society to send their proposals via an online platform.
The Finance Minister emphasised that the Basic Retirement Pension is being maintained at Rs 9 000 monthly, which is 20% above the relative poverty line. The first payment of benefits under the CSG will be effected in July 2023 as mentioned in Budget 2020-2021.