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

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Lameez Omarjee
Lameez Omarjee
Parliamentary reporter at Fin24.com

Related stories

An emergency budget needs bold decisions, including a bigger public sector

Choosing this path would create work for many while also building the infrastructure that the country needs

Institute of Retirement Funds Africa’s (IRFA) conference

Influences that affect the retirement fund ecosystem will be in the spotlight

The theme of the IRFA conference is ‘The Retirement Ecosystem: You Have The Power’

An ecosystem is a complex system of living organisms, their environment and all of their interrelationships in a particular unit of space

Institute of Retirement Funds Africa’s (IRFA) conference

Influences that affect the retirement fund ecosystem will be in the spotlight

Not on to use pensions to bail out state

The suggestion in the ANC’s election manifesto on prescribed assets has drawn fire

The future must change for women

Women are paid less than men, so their pensions are smaller
Advertising

Subscribers only

Covid-19 surges in the Eastern Cape

With people queuing for services, no water, lax enforcement of mask rules and plenty of partying, the virus is flourishing once again, and a quarter of the growth is in the Eastern Cape

Ace prepares ANC branches for battle

ANC secretary general Ace Magashule is ignoring party policy on corruption-charged officials and taking his battle to branch level, where his ‘slate capture’ strategy is expected to leave Ramaphosa on the ropes

More top stories

Sudan’s government gambles over fuel-subsidy cuts — and people pay...

Economists question the manner in which the transitional government partially cut fuel subsidies

Traditional healers need new spaces

Proper facilities supported by well-researched cultural principles will go a long way to improving the image and perception of the practice of traditional medicine

Did Botswana execute ‘poachers’ ?

The Botswana Defence Force’s anti-poaching unit has long been accused of a ‘shoot to kill’ policy. Over 20 years the unit has killed 30 Namibians and 22 Zimbabweans

Limpopo big-game farmer accused of constant harassment

A family’s struggle against alleged intimidation and failure to act by the authorities mirrors the daily challenges farm dwellers face
Advertising

press releases

Loading latest Press Releases…