the dismantling and replacement of the National Pension Fund (NPF) by the outgoing Government, he will, for…
(No. B/624) Mr N. Beejan (Second Member for Grand’Baie & Poudre d'Or) asked the Minister of Social Integration, Social Security and National Solidarity whether, in regard to the dismantling and replacement of the National Pension Fund (NPF) by the outgoing Government, he will, for the benefit of the House, obtain information as to – (a) the balance of the then NPF at time of dissolution; (b) whether the assets thereof were transferred to a successor entity, redistributed or repurposed, and (c) whether same impacted the beneficiaries thereof and long-term pension sustainability.
Mr Deputy Speaker, Sir, I wish to inform the House that the National Pension Fund was established under section 37 of the National Pensions Act 1976 and is administered by Ministry of Social Integration, Social Security and National Solidarity. Contribution to the Fund were made by both employers and employees in the private sector at the rate of 6% and 3%, respectively. These contributions were capped based on a ceiling applied to the basic salary which stood at Rs18,740 in August 2020 when the then government decided to change the system. With regard to what is stated in the introductory part of the question, I wish to clarify that the Fund is still in existence and operational. It was the contribution of employers and employees that were discontinued by the June 2020 Budget of the previous government. In fact, it was the operation of the National Pension Scheme that was effectively dismantled as from 01 September 2020. The National Pensions Fund, although not formally dismantled, was placed in a path of gradual extinction. I also wish to inform the hon. Member that the National Pensions Act was amended through the Finance (Miscellaneous Provisions) Act 2020, abolishing the payment of
87 contributions to the NPF and introducing the Contribution Sociale Généralisée (CSG) as from 01 September 2020. With the introduction of the CSG, contributions are now collected by the Mauritius Revenue Authority (MRA). Mr Deputy Speaker, Sir, regarding part (a) of the question, I am informed that when contributions were stopped in 2020, the funds value stood at approximately Rs139 billion. Since then, the funds have been dispersing about Rs4.5 billion annually in the form of contributory retirement pensions, contributory widows’ pensions, contributory invalidity pensions, contributory orphans’ pensions and industrial injury benefits. Over the past four and a half years, a total of around Rs23 billion have been disbursed. Regarding part (b) of the question, the answer is no. The assets of the fund remain under the name of the National Pensions Fund which continues to exist. Regarding part (c) of the question, as the assets remain under the control of the National Pensions Fund, actual and future beneficiaries will continue to receive their pensions in accordance with the provisions of the National Pensions Act. Thank you, Mr Deputy Speaker, Sir.
Do you have a supplementary question?
Yes. Thank you, Mr Deputy Speaker, Sir. Can the hon. Minister provide or even table further information and facts on the decision of the former Government to stop NPF contributions in 2020? Thank you.
In the name of time, I can either table the response or I can answer it. It is up to the Deputy Speaker, Sir, to decide.
If it is long, you better table it.
Okay, thank you, Mr Deputy Speaker, Sir. I will table the rest of the answer.
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