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|
|1||Department of Transport||6|
|2||Department of Works||179|
|3||Hela Provincial Health Authority||2|
|4||Morobe Provincial Administration||12|
|5||National Cultural Commission||15|
|6||National Museum & Art Gallery||3|
|7||New Ireland Provincial Health Authority||24|
|8||Western Highlands Provincial Administration||1|
|9||Western Highlands Provincial Health Authority||27|
|10||Department of Police||132|
|1||Department of Community Development||6|
|2||Department of Transport||2|
|3||Department of Health||9|
|4||National Cultural Commission||5|
|5||Port Moresby General Hospital||27|
|6||Eastern Highlands Provincial Administration||1|
|7||Western Provincial Administration||1|
|8||Western Provincial Administration||3|
|9||Southern Highlands Provincial Administration||20|
|10||West New Britain Provincial Administration||4|
|11||West New Britain Provincial Health Authority||2|
“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”.