Query: The article that appeared in the Confidente newspaper of 24-30 March 2016, under the heading, “Facts on OPM early retirement plan,” warrants a response from the Office of the Prime Minister to put the issues raised by the unknown author into correct perspective.
Response: The author made several misleading and unsubstantiated conclusions and remarks about the proposed strategies to contain the public service wage bill following the media statement issued by the Office of the Prime Minister on the 5th of February 2016 on this matter. Suffice to say, the proposed strategies were approved by Cabinet. Cabinet then tasked the Office of the Prime Minister to spearhead the process, which includes, developing an implementation plan.
The article in the Confidente is alleging that “OPM, selfishly, spoke about retiring civil servants early at 50.” This does not reflect the spirit in which the media statement was issued. The Office of the Prime Minister therefore refutes such claims because as we have already pointed out, there is no decision taken to reduce the early retirement age from 55 to 50 years. There is only a proposal to consider this option as one of a number of proposals brought forward as measures to reduce the public wage bill and these proposals are to be subjected to thorough investigations and consultation with stakeholders.
The nation thus needs to understand that this measure has not yet been implemented and will not be implemented until such investigations and consultations have been carried out and they have confirmed its viability.
At the moment, the early retirement age in the public service is 55 years as per the Public Service Act of 1995.
The Office of the Prime Minister would further like to clarify that early retirement is optional for those who wish to retire early than the pensionable age of 60 years. It does not constitute reduced mandatory retirement age as civil servants are never compelled to go on early retirement. Against this background, option for early retirement is a flexibility for civil servants as it allows those who prefer to retire early to do so without having their pension benefits reduced. But again as stated earlier, early retirement whether at the current age of 55 years or at any other age that it might be changed to, is and will be optional.
The article is further insinuating that the reduction of the age is aimed at “failing President Hage Geingob’s victory to the 2nd term in Office and gradually promoting instability in the country…” Such unfounded and far-fetched statements are uncalled for and are rejected. In fact, making such claims that the proposed strategies for the wage bill containment are aimed at undermining the Head of State is highly ridiculous. Nothing can be so far removed from reality like such insinuations.
The government works along the principle of transparency and inclusivity. The consultations with relevant stakeholders on the strategies to reduce the public wage bill as directed by the Cabinet will therefore be done in that spirit. The Office of the Prime Minister thus wants to assure civil servants and the public in general that there is no plan to send any single member of the public service into the street by means of the proposed strategy. There are also no political reasons for raising the proposed strategies but such have been brought up because of a genuine desire by the government collectively to manage and contain the public service wage bill.
It must be understood that the main objective of any public service is to improve service delivery through effective and efficient initiatives in order to maximize the return on money spent. This requires an appropriate balance between wage and non-wage expenditures. The rate of growth in wages and salaries in Namibia in recent years deserves immediate attention, because of the threat it poses to debt and fiscal sustainability.
The government will ensure that efforts to curtail the increasing wage bill are supplemented by a results-oriented remuneration system, a staff structure that adequately reflects skills and responsibilities and more efficient utilization of staff members.
- Saima Shaanika, Public Relations Officer, Office of the Prime Minister, email address: Saima.shaanika@opm.gov.na