2024–2026 · 26ᵉ THERE MAY BE ERRORS OR INCONSISTENCIES Monday, 20 July 2026

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Private Notice Question · No. B/964 · Series B Answered

the Commission of Experts on Pension Reform, he will state whether consideration will be given for the revoc…

Asked by
Mr Adrien Duval
Fourth Member · Port Louis North and Montagne Longue
Addressed to
Prime Minister
Prime Minister, Minister of Defence, Home Affairs and External Communications, …
Sitting
Tuesday, 7 July 2026
Question 4 of 62
The question, as placed

(No. B/964) Mr A. Duval (Fourth Member for Port Louis North & Montagne Longue) asked the Prime Minister, Minister of Defence, Home Affairs and External Communications, Minister of Finance, Minister for Rodrigues and Outer Islands whether, in regard to the Commission of Experts on Pension Reform, he will state whether consideration will be given for the revocation of the appointment of the members thereof for non- submission of its final Report to the Steering Committee prior to the presentation of the Budget 2026-2027 and, if not, why not.


The exchange, in full
The Prime Minister

Mr Deputy Speaker, Sir, let me be absolutely clear and unequivocal. The members of the Commission of Experts on Pension Reform have discharged their responsibilities with the utmost diligence, independence, professionalism and integrity. I would like to reiterate what I stated in my reply to the Private Notice Question on 25 June 2026. The members of the Commission are accomplished professionals who have distinguished themselves in their respective fields, both nationally and internationally. I consider it wholly unfair and unjustified that the members of the Commission should be blamed for decisions announced in the Budget Speech relating to pension reform. Their role has been to provide independent expert advice and recommendations. It is, therefore, neither appropriate nor fair to attribute to the Commission the policy decisions contained in the Budget Speech. Thus, the question of revoking their appointment does not arise. In fact, Mr Deputy Speaker, Sir, members of the Commission have been appointed for a period of 18 months as from October 2025 with clear terms of reference, in consultation with the World Bank and the IMF, and approved by Cabinet in September 2025. The Commission was mandated to examine the three pillars of the pension system, namely – (i) the Basic Non-Contributory Pensions, in particular the Basic Retirement Pension; (ii) the Contributory Pension Schemes, and (iii) the Voluntary Private Pensions, including personal retirement savings plans and occupational pension schemes offered by employers. After only eight months, Mr Deputy Speaker, Sir, of intense consultations and deliberations, the Commission submitted its Interim Report in May 2026 in line with its terms of reference. This report was presented on the 20 May 2026 to the Steering Committee on Pension Reform chaired by myself and comprising – (a) the then Deputy Prime Minister; (b) the Minister of Agro-Industry, Food Security, Blue Economy and Fisheries; (c) the Minister of Social Integration, Social Security and National Solidarity; (d) the Minister of Financial Services and Economic Planning; (e) the Minister of Labour and Industrial Relations; (f) the Minister of Industry, SMEs and Cooperatives; (g) the Junior Minister of Finance, and (h) the Junior Minister of Social Integration, Social Security and National Solidarity. Mr Deputy Speaker, Sir, I must emphasise that Members of the Steering Committee made a number of comments and suggestions which was taken on-board by the Commission. There was broad consensus from members of the Steering Committee on the direction of the reforms. Mr Deputy Speaker, Sir, due to the urgency of the fiscal situation, especially the still very high level of public debt estimated at 87.7 percent of GDP as at June of this year, and given that the Commission had completed its analysis and recommendations on the first pillar of the pension system, in particular the Basic Retirement Pension, Government decided to act immediately on the policy recommended by the Commission in its Interim Report. To facilitate the implementation of this reform, we are setting up, as recommended by the Commission – (a) a unified Independent Pensions Regulatory Authority to regulate the entire pension system, and (b) a Central Pensions Administration Bureau which will regroup all state sponsored schemes into one place to digitalise and facilitate service to members and pensioners. Mr Deputy Speaker, Sir, the Commission has still approximately nine months remaining to submit its final report, in particular on pillars two and three of our pension system. In addition to its substantive findings and recommendations contained in the Interim Report, the Commission is expected to set out the modalities and implementation roadmap required to give effect to the recommendations. Specifically, the final report would provide guidance on the legislative, administrative, and institutional measures necessary to implement those recommendations, including – (a) a comprehensive review of the legislative framework governing pensions and retirement benefits, including the Pensions Act, the Statutory Bodies Pension Funds Act, the Workers’ Rights (Portable Retirement Gratuity Fund) Regulations 2020, the National Pensions Act, the National Savings Fund Act, the President’s Emoluments and Pension Act, the National Assembly (Retiring Allowances) Act, and the Social Contribution and Social Benefits Act; (b) the setting up of the National Pensions and Provident Fund, and (c) the appropriate mechanism to be put in place for managing and investing the funds under the National Pensions and Provident Fund. Mr Deputy Speaker, Sir, I wish to emphasise that the reform of pillar two and pillar three of the pension system, that is, as I mentioned earlier, the contributory pension schemes and the voluntary private schemes are not yet finalised. In particular, the establishment of the National Pensions and Provident Fund and the modalities will have to be worked out. The implementation will require a dedicated legislation, extensive consultations with stakeholders, and also guidance from the proposed Independent Pensions Regulatory Authority. The future of the Portable Retirement Gratuity Fund as well as the National Savings Fund will also be carefully considered, taking into account both the short and long- term interests of the workers. Subject to Cabinet approval, the necessary legislation is expected to be introduced before the end of the financial year 2026-2027. I also wish to assure the House that the proposed reforms will not leave any worker worse off. On the contrary, every worker will have an individual dedicated account, similar to the arrangements that existed under the National Pensions Fund and furthermore, the reforms will not result in any increase in contribution rates for either employees or employers. The CSG Contributions that are currently credited into the Consolidated Fund will be progressively redirected to workers' individual accounts. Mr Deputy Speaker, Sir, all these reforms are being done in the wider interest of workers and to protect their future earnings after their retirement. Coming back to the question, the Commission has been entrusted with a mandate of significant national importance, and Government has every confidence in the expertise, independence and professionalism of its members to discharge that responsibility. Accordingly, I wish to reiterate that the question of revoking the appointment of the members of the Commission does not arise. I have requested them to continue the important work entrusted to them and to complete their mandate by submitting their final report. Mr Deputy Speaker, Sir, it is clear that with the reform of the pension system, as a responsible Government we have not chosen the easy way out and to try to get political mileage, but rather our objective is to save the system to ensure that all the elderly obtain a pension in future and that the future generation is not burdened with an unsustainable pension system.

The Deputy Speaker

Yes, your question?

Mr A. Duval

Mr Deputy Speaker, Sir, may I ask the hon. Prime Minister whether he does not find that the Commission has acted outside of the mandate, conferred by the supreme authority of the Executive, that is, Cabinet, which decided in September, in fact, on 26 September, to set up a Steering Committee which shall provide guidance to the Commission, but the most important, which shall assess and act upon the recommendation of the Commission. Yet, according to the reply of the hon. Prime Minister last week, it is clear that a presentation was made to the Steering Committee, questions were raised, but the final report was never assessed and acted upon by the Steering Committee. Therefore, does he not find now …

The Deputy Speaker

Put your question!

Mr A. Duval

… that it has acted outside of its mandate?

The Prime Minister

No, not at all, Mr Deputy Speaker, Sir. Not at all! I thought I explained that there were three pillars that the Commission was mandated to examine – three pillars. The first one was the Basic Non-Contributory Pensions, in particular the Basic Retirement Pension, the second pillar was the Contributory Pension Schemes, and the third was the Voluntary Private Pensions, which included private savings, retirement savings plans and occupational pension schemes offered by employers. For the first pillar, they have already done the work. It was urgent because you know what the debt is. So, it was urgent to do something about it. We do not wait for another nine months.

The Deputy Speaker

Hon. Leader of the Opposition!

Mr Lesjongard

Thank you, Mr Deputy Speaker, Sir. Hon. Prime Minister, I raised the issue of possible conflict of interest last time. Can I ask you whether you are aware that one of the members of that Commission has recently obtained a contract for consultancy services by the Ministry of Finance itself?

The Prime Minister

I am not aware. What consultancy services are you referring to?

Mr Lesjongard

It is consultant for investment by advisory services to the National Pension Fund and National Saving Funds Investment Committee.

The Prime Minister

I am not aware that he has been given a particular task to advise on this. He is advising generally.

The Deputy Speaker

Last question on this.

Mr A. Duval

Yes, thank you, Mr Deputy Speaker, Sir. Mr Deputy Speaker, Sir, I must reiterate, whether the question was urgent or not, it does not matter. Cabinet had laid down the modalities.

The Deputy Speaker

Okay, put your question now.

Mr A. Duval

My question is coming. And this has been, in fact, reaffirmed by the hon. Minister of Social Security himself. In his press conference, he said and I quote. He said …

An hon. Member

Question!

Mr A. Duval

Sa mem kestion la ! Whether he will agree with that statement – « … nou’nn poz kestion, ek lerla sipoze donn nou koumandir enn version sifre exakteman ki pe propoze ek sipoze donn nou enn interim report, me nou pa’nn gagn interim report la zamin. Okay, et le interim report, mo pakone ki’nn arive inn soumet au Premie minis et se sa ki finn rant dan bidze. » Therefore, in light of what I have quoted from the Cabinet decision – the modalities to assess and to act upon – does he not find, here, that this has been blatantly disregarded?

The Deputy Speaker

Hon. Prime Minister!

The Prime Minister

No, it has not been. What has happened is that the Interim Report was shown to all the members of the Steering Committee in way of slides, not a report itself but in way of slides. Time was urgent. We had to act. We had the interim report. We decided to go ahead. The two other pillars, as I said, are not yet ready.

Mr A. Duval

You should talk to your Minister of Social Security. This is not what he said at all.

The Prime Minister

I speak to him every day.

The Deputy Speaker

Hon. Members, the Table has been advised that the following PQs have been withdrawn: B/967, B968, B/969, B/971, B/972, B/973, B/974, B/975, and B/977. Time is over. Hon. Member, the Table has been advised that PQ B/1007 will be replied by the hon. Minister of Local Government. I now call the hon. Fourth Member for Rodrigues, hon. Edouard. NATIONAL CYCLING CHAMPIONSHIP – ROAD ACCIDENT – SAFETY & SECURITY PROTOCOLS