The Social Alliance has kept its promise and the trade unions must be jubilant. The minister of Social Security, Sheila Bappoo, announced at her first press conference, that her ministry is commiting itself to restoring the old age pension to all Mauritians over 60 as from September. This means that all pensioners (whatever their earnings) will be reinstated in their right to obtain their pension contrarily to the targeting approach that the former government introduced last year by amending the National Pension Act (NPA).

This amendment provided that all those having monthly earnings of more than Rs 17,333 would not be entitled to a State pension. With the new amendment, minister Bappoo intends to make sure that the 3,357 pensioners, who have been deprived of their pension, will start getting their pension again together with their arrears.

Sheila Bappoo finds the previous government’s approach “unfair, humiliating and disrespectful towards the old age pensioners.” In fact, the return to the former system may mean a lot for the Labour party, as they were the ones to introduce universal pension in 1976.

<B>Long-term vision</B>

The trade unions share the new government’s vision as they had strongly opposed the targeted approach. According to the vice-president of the Fédération des Syndicats du Civil Service (FSSC), Rashid Imrith, “there are few millionaires but a large number of poor people. The problem with the targeting system is that the ones deserving the pension feel humiliated.”

Yet, the former government introduced this measure with a long-term vision. According to former Social Security minister, Sam Lauthan, the number of old people is on the upward trend and will continue to increase. With this growth, the payment of the pensions to all of them would rise from 2% of the Gross Domestic Product (GDP) to 11% of the GDP in 30 years. With the targeted approach the MSM-MMM government expected the State to save up to Rs 80 million a year in the long term.

But the Labour party obviously does not share the same vision. “With the former government’s system, the State would only save 1.7%. In my opinion, this is simply ridiculous.” However, the minister is conscious that the population is ageing and intends to set up a steering committee to work on a sustainable solution. Meanwhile, the NPA will be amended in August and all pensioners should have their pensions back by September.