Civil Service Regulations Amended to Prevent Double Pensions for Re-employed Retirees

Civil Service regulations have been amended to prohibit civil servants from receiving a retirement pension if they return to public service.

Under the amendment submitted to the Civil Service Commission (CSC), a retired employee who is reappointed to a government post or employed by a state-owned enterprise will not receive a retirement allowance during the period of re-employment.

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The revised regulation states that retirement allowances will be paid on a monthly basis, beginning from the month following an employee’s retirement. The CSC said the Pension Office must be informed when a retiree resumes work in a government institution or a state-owned company.

According to the commission, any retirement pension received while the individual remains employed in the public sector must be refunded to the state.

Several state institutions operate separate long-term pension schemes, including the Maldives Police Service, the Maldives National Defence Force, Maldives Customs Service, Maldives Immigration, and Maldives Correctional Service. Retirees from these institutions have previously been eligible to receive pensions even after taking up other public sector roles.

The CSC noted that Police Regulations were also amended last week to prevent former police officers from receiving retirement allowances if they are appointed to other government positions after leaving the service.

State budget figures show that MVR 272 million was allocated in 2019 for pension schemes covering 13 state institutions that operate individual retirement systems. The commission said MVR 266 million was spent last year on double pension payments, with an additional MVR 70 million recorded over the past five years to cover such payments.

The amendment aims to address concerns over overlapping pension benefits and reduce the financial burden on the state.