Retirement and Pension Benefits in the Public Sector: Framework Maintained by the PRB

Retirement and pension benefits in the public sector are a central pillar of social protection for employees in Mauritius. The report from the Pay Research Bureau (PRB) highlights that "the pension is a major source of income that employees receive upon retirement," emphasizing that as a regular income mechanism, it allows retirees to "secure their lives after ceasing work."

Successive Pension System Reforms

The PRB reviews the key reforms that have occurred in recent years. Following the reforms introduced in the 2008 PRB report, "the mandatory retirement age was raised to 65 years" and "a contributory pension scheme with defined benefits was established." However, a significant change occurred in 2013 with the introduction of "a single defined contribution pension scheme for new hires starting from January 1, 2013."

During the current review exercise, representations made by various federations primarily focused on "increasing the one-time payment by 2%", "removing the provision that reduces the annual pension rate by 2.5% per year", and "extending marriage-related retirement benefits to male officers, widows, and widowers."

Institutional Proposals and Consultations

The Ministry of Public Service and Administrative Reforms has submitted several proposals, including "the inclusion of specific clauses for cases of early retirement", "the removal of provisions related to extending service beyond the mandatory retirement age", and "the extension of marriage-related retirement benefits to male officers, widows, and widowers."

After holding consultation meetings to "examine and discuss the proposals from all stakeholders", the Bureau indicates that "appropriate provisions have been included in this chapter."

Contributions and Maintenance of Existing Provisions

Regarding contributions to the defined benefits pension scheme, the PRB emphasizes that current provisions require "all employees to contribute 6% of their pensionable earnings, rounded to the nearest rupee." Trainees, students, cadets, or apprentices recruited under specific schemes contribute "3% of their earnings."

In this regard, the Bureau makes a clear recommendation: "We recommend that the above provisions concerning contributions be maintained." It also specifies that when determining new salaries, "employee pension contributions, taxable elements related to them, and all other modifications of pension provisions have been taken into account."

Reimbursement of Contributions and Retirement Age

The report confirms the maintenance of the contribution reimbursement mechanism. An employee leaving the public sector without entitlement to a pension or transferable benefits will "receive a 100% refund of their contributions, with compounded interest of 4% per year," provided they have contributed for at least one year.

Finally, the PRB maintains all provisions related to the retirement age. It is reaffirmed that "the normal retirement age for a public servant in a pensionable position is 65 years," while recognizing the right to retire at 60 years, or even 55 years in certain cases, subject to required approvals. For judges, "the normal retirement age is set at 67 years."