Govt reverses decision, new retirees will continue to receive monthly allowance

The government has backtracked its decision to discontinue monthly pension allowances to new retirees subject to 'double pensions'.

Sun has learned that the decision was reversed at the direct instruction of President Dr. Mohamed Muizzu. However, the government has yet to issue an official statement on the matter.

The discontinuation was informed by Finance Ministry in a circular to all government entities last week, which stated that under the policy to become effective in January 2025, new retirees from government entities subject to 'double pensions' will not receive their allowances, but will receive the basic retirement pensions.

The Ministry attributed the measure to the government’s ongoing efforts to reduce state expenditure.

Double pensions occur when retirees receive an additional retirement allowance on top of the official pension money at the state’s expense due to retirement schemes implemented by some government agencies.