GOVERNMENT HONORS COMITTMENT TO PAY OUT PUBLIC SERVANTS

The Government has honored its commitment to pay out a total of 481 Public Servants through the Public Service retirement exercise.

Public Service Minister Soroi Eoe confirmed that the government through Treasury has released K28.4 million in October to retire these Public Servants who have reached compulsory retirement age and others who being retired on medical grounds. The Public Service Minister said as a result of the retirement exercise the government will be saving K14m when it retires the 481 Public Servants by the end of this year.

Minister Eoe says, K430m was allocated in the 2020 Budget to retire 2,150 compulsory retirees who are over the age of 65 years. From this a total of 481 Public Servants from 10 agencies were confirmed and validated for payout.

Mr. Eoe explained that from the K28.4m, K16.5 has been paid to the Department of Personnel Management who will facilitate payments for the identified line agencies with K11.9 million transferred to Police for the constabulary to facilitate paying out its 132 retirees.

Department of Personnel Management is now working on batch 2 for 2020 and have validated a further 138 requests which will cost K7.6m. This has been submitted to Treasury. The balance of K401.6 million is being looked at for re-appropriation in the 2021 Budget. The 481 Public Servants to be retired include an outstanding of 80 Public Servants from 11 agencies for 2019 and 401 from 10 agencies for 2020.

The break-up of this is as per the table below:

                          AGENCY (2020)TOTAL RETIREES
1Department of Transport6
2Department of Works179
3Hela Provincial Health Authority2
4Morobe Provincial Administration12
5National Cultural Commission15
6National Museum & Art Gallery3
7New Ireland Provincial Health Authority24
8Western Highlands Provincial Administration1
9Western Highlands Provincial Health Authority27
10Department of Police132
                                 
                          AGENCY (2019) 
1Department of Community Development6
2Department of Transport2
3Department of Health 9
4National  Cultural Commission5
5Port Moresby General Hospital27
6Eastern Highlands Provincial Administration1
7Western Provincial Administration1
8Western Provincial Administration3
9Southern Highlands Provincial Administration20
10West New Britain Provincial Administration4
11West New Britain Provincial Health Authority2
 Total 481

“The payout of retirees has been a long outstanding issue but I am pleased that the government is able to pay them out to free up the Governments Ascender Payroll system which will enable saving about K14m in 2021 once the deed of release is signed off by retirees and they are taken off the Payroll and to reprioritize these vacancies for essential services”.

Minister Eoe said, as part of the Public Sector Reforms and the need to control costs in the Public Service Payroll, DPM is doing all it can to clear the Ascender Payroll through the payout of Public Servants who have reached retirement age but have remained on the payroll over the years. “This is a great achievement for the Marape government in its efforts to cut the Public Service wage bill and the commitment this government has made to the Public Sector Reforms on improving and modernizing the public service by honoring this commitment”.