Transcript Access to pensions in old age to all citizens through a

ACCESS TO PENSIONS IN OLD AGE
TO ALL CITIZENS THROUGH A
UNIVERSAL PENSION
IN MAURITIUS
Jayavadee Sooben
Principal Assistant Secretary
Ministry of Social Security,
National Solidarity , Senior
Citizens Welfare and
Reform Institutions
MAURITIUS
MAURITIUS
Demographic Position 2001-2006
2001
2006
1,199,881
1,252,698
Children < 15
307,136
299.794
Elderly > 60
109,180
121.770
Population
Mauritius Five –pillar Pension System
is made up of:





A universal Non-Contributory Pension Scheme
Contributory Scheme for private Sector and NonContributory Defined Benefits schemes for public
sector
A national Savings Fund – Provident fund
Private Occupational pension schemes mainly
sponsored by employers
Family support through extended family system; free
health care and free education by government; free
transport and other facilities under social assistance
BASIC RETIREMENT PENSION
(old age pension)

Non-Contributory benefit

Funded from Government Budget

Granted to all persons of age 60 and above
subject to residency conditions
Basic Retirement Pension (BRP)
Rates – (Year 2006)
Age group
Rate
(Rs.)
%
Average
earnings
Rate
enhanced
%
Average
earnings
60 - 89
2,365
19%
(Rs.)
3,855
90 - 100
7,035
56%
8,525
68%
100 and
above
7,985
63%
9,475
75%
31%
Basic Retirement Pension (BRP)
Rates- (2006)

Average earnings approx. Rs.12,600 , i.e
USD 400

Enhanced Pension = Basic Retirement
pension + Allowance of Rs. 1,490
Projections for Years 2006 - 2040
BRP Population
Pensioner Support
Ratio
BRP costs
Year 2006
Year 2040
130,000
350,000
6.8
2.4
2.0 % of GDP
2.8% of GDP
2.0 % of GDP
5.7% of GDP
Uprated in line with prices
BRP costs
Uprated in line with prices
Main options to review the present
system of pensions

Increase in pension age

Gradual increase in the rate of BRP

Targeting the BRP

Introducing a couple – based pension rate
New Policies Announced are:



Increase in normal retirement age from 60 to
65 years over 10 years –from august 2008
Similarly, pension age for entitlement to
universal retirement pension to increase from
60 to 65 years
Pension age for contributory pension –
private sector –to increase from 60 to 65
years
Increase in Retirement AgeWHY?

Healthier life style leads to longer terms of employment

Pensions provision to be financially sustainable over the years

Life expectancy at 60
2005
2040
Men
16.5
19.3
Women
20.3
21.7
“The old age pensioner has throughout the years paid
taxes on commodities he has consumed as everybody else
has. He has paid taxes on tea, sugar, tobacco, matches,
rice, pulses, dried fish, rum, calico, khahi, everything he
has consumed and used to be able to live as a useful
member of our society. One way or another he has
contributed to the national budget. The old age pension
scheme being financed out of public funds is (thus) a
contributory one. The applicant for old age pension has
already paid his contributions”
“Statement made by Hon. Chadien during the debates in the
Legislative Council of Mauritius on 25 June 1857