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Public servants cash out pension then return to work: report

Public servants are resigning to cash out their pensions only to rejoin the public service, according to a report by the public service commission.

The commission on Wednesday released its report on efficiency and effectiveness in the public service for the period between January 1 and March 31 2018. It observed a “lack of control” of resignations by public servants to cash out their pensions.

The commission has recommended to the Department of Public Service and Administration and the Government Pension and Administration Agency probe the trend further. “There is a long-term risk for Public Servants who are engaging in this practice,” the report read.

The GPAA similarly observed this trend as far back as 2015. At the time, chief operating officer Jay Morar said that this behaviour was mainly due to public servants being misinformed about pension reforms.

The report also revealed that during the quarter, there were more appointments than terminations of service. The amount of appointments between July 1 2017 and March 31 2018 increased by 50%.

Among the reasons for terminations of service were retirement, resignations, abscondment, contract expiry, death and dismissals, the report said. — Fin 24

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Lameez Omarjee
Lameez Omarjee
Parliamentary reporter at Fin24.com

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