A PROCLAMATION TO PROVIDE FOR PUBLIC SERVANTS’ PENSION PROCLAMATION No. 714/2011

Legislation

By Abrham Yohannes on July 28, 2011 • ( 8 Comments )

PART TEN

MISCELLANEOUS PROVISIONS

52. Relationship between Entitlements

1/If a beneficiary who receives retirement benefit is employed by a public office as a permanent public servant and has not reached the retirement age, his new service shall be added to his previous service; provided, however, that if the retirement pension based on the accumulated service is less than the previous one, he shall have the right to receive the previous retirement pension.

2/Without prejudice to the provisions of Part

Eight of this Proclamation, if a beneficiary is entitled to more than one benefits, in accordance with this Proclamation the amount of benefit to be paid shall be determined in accordance with the directive to be issued by the Agency.

3/Without prejudice to sub-article (2) of Article 16 of this Proclamation, a retired employee of a nationalized enterprise who is receiving monthly benefit on the date of nationalization shall continue to get the amount of pension benefit adjusted in accordance with this Proclamation.

4/Senior government officials and members of parliament who have completed at least 10 years of service or who attains the age of retirement upon separating from service before completing five years of service shall be entitled to benefits applicable to public servants other than members of the defense force and the police in accordance with the provisions of this Proclamation.

5/Without prejudice to the provision of sub-article (4) of this Article, the payment of pension benefit to an outgoing senior government official or member of parliament pursuant to Article 19(5) or Article 23(2) of this Proclamation shall be terminated following a decision to terminate his rights and benefits in accordance with Article 55 of Proclamation No. 653/2009.

53. Obligation to Provide Evidentiary Data and Duty to Cooperate

1/Any public office shall collect, compile and submit to the Agency, in accordance with the provisions of Part Two of this Proclamation and in accordance with the form and within the time limit specified by the Agency, evidentiary data relating to each public servant which are necessary for the implementation of this Proclamation.

2/For the purpose of implementing this

Proclamation, any person shall furnish information or written evidence or appear and testify or give his opinion when so requested by the Agency.

3/ The appropriate bodies shall have the duty to cooperate with the Agency in collecting pension contributions pursuant to delegations of powers under Article 12(5) of this Proclamation.

54. Decision of the Agency

1/The fulfillment of conditions for entitlement to any kind of benefit payable in accordance with this Proclamation and the amount of the benefit shall be decided by the Agency.

2/The decision of the Agency to be rendered in accordance with sub-article (1) of this Article shall be based on its own records, evidentiary data submitted to it in accordance with Article 53 of this Proclamation and, as may be appropriate, on additional evidences produced by the beneficiary.

3/In the case of a difference between the records of the Agency and evidentiary data submitted to it, the prevailing evidence shall be decided by the Agency.

55. Review of Decisions

1/The Agency may review its previous decision upon request by an aggrieved beneficiary or on its own initiative.

2/Notwithstanding the provisions of Article 51 of this Proclamation, where upon review the Agency finds that there is reasonable ground for cancellation, deduction or termination of benefits, it may suspend payment to the extent the benefit is to be cancelled, deducted or terminated.

3/Notwithstanding the provisions of Article 51 of this Proclamation, if the Agency, upon review, has decided to deduct the benefit or the benefit paid is contrary to this Proclamation, it shall have the power to deduct the amount paid thereof from the benefit of the beneficiary and transfer same to pension fund.

56. Appeal

1/A beneficiary who is aggrieved by the decision of the Agency made pursuant to Article 54 or Article 55 of this Proclamation shall have a right to lodge an appeal to the Social Security Appeal Tribunal established under Article 57 of this Proclamation.

2/An appeal may lodged to the Tribunal within one year from the date of the decision which is subject to the appeal.

3/The Tribunal, upon examining an appeal submitted to it in line with the provisions of this Proclamation and regulations and directives issued for the implementation of this Proclamation, may reverse, vary or confirm the decision of the Agency.

4/The decision of the Tribunal given in accordance with sub-article (3) of this Article shall be final; provided, however, that any party may appeal to the Federal Supreme Court within 30 days, if there is a fundamental error of law in the decision.

57. Social Security Appeal Tribunal

1/A Social Security Appeal Tribunal is hereby established to hear and decide on appeals to be submitted in accordance with Article 56 of this Proclamation.

2/The organization and assignment of members of the Tribunal shall be determined by the government.

3/There shall be quorum where more than half of the members of the Tribunal are present at its meeting.

4/The Tribunal shall pass decisions by majority vote; provided, however, that the Chairperson shall have a casting vote in case of a tie.

5/Without prejudice to the provisions of this

Article, the Tribunal may issue its own rules of procedures.

58. Tax Exemption

No tax shall be payable on benefits received, pension contributions collected and profits earned from investment of pension funds, in accordance with this Proclamation.

59. Transitory Provisions

1/Previous laws and directives shall remain applicable to legal situations created before the coming into force of this Proclamation.

2/ The pension contributions to be collected in accordance with Article 10 and Article 11 of this Proclamation shall, based on monthly salary, be:

a)from public servants, 5% for the first year, 6% for the second year and 7% as of the beginning of the third year from the effective date of this Proclamation;

b)from public offices with respect to the civil service pension fund, 7% for the first year, 8% for the second year, 9% for the third year and 11% as of the beginning of fourth year from the effective date of this Proclamation;

c)from public offices with respect to the military and police service pension fund, 18% for the first year, 20% for the second year, 22% for the third year and 25% as of the beginning of fourth year from the effective date of this Proclamation.

3/ The percentages to be used for the calculation of retirement pension and invalidity pension in accordance with Article 20(1) and Article 24 of this Proclamation shall be:

a)with respect to public servants other than members of the defense force or the police, 1.15% for the first year,

1.19% for the second year, 1.22% for the third year and 1.25% as of the beginning of the fourth year from the effective date of this Proclamation;

b) the respect to members of the defense force or the police, 1.53% for the first year, 1.58% for the second year, 1.62% for the third year and 1.65% as of the beginning of the fourth year from the effective date of this Proclamation.

4/The salary ratios to be used for the calculation of retirement gratuity and invalidity gratuity in accordance with Articles 22 and Article 26 of this Proclamation shall be:

a)with respect to public servants other than members of the defense force or the police, 1.15 month’s salary for the first year, 1.19 month’s salary for the second year, 1.22 month’s salary for the third year and 1.25 month’s salary as of the beginning of the fourth year from the effective date of this Proclamation;

b) with respect to members of the defense force or the police, 1.53 month’s salary for the first year, 1.58 month’s salary for the second year, 1.62 month’s salary for the third year and 1.65 month’s salary as of the beginning of the fourth year from the effective date of this Proclamation.

5/Public servants who have been transferred with privatized enterprises shall make contributions to the Private Organizations Pension Fund as of the effective date of this Proclamation; provided, however, that where an employee of the privatized enterprise retires before the Private Organizations Pension Scheme starts to determine pension benefits, the contribution of both the employee and employer shall be transferred to the Public Servants Pension Fund and the retirement pension shall be determined accordingly.

6/Until the Agency issues the schedule referred to in Article 30 of this Proclamation to determine the degrees of incapacity, the practices followed by medical boards shall remain applicable.

60. Power to Issue Regulation and Directive

1/The Council of Ministers may issue regulations necessary for the implementation of this Proclamation.

2/The Agency may issue directives necessary for the implementation of this Proclamation and regulations issued pursuant to sub-article

(1) of this Article.

61. Penalty

Whosoever is unwilling to submit evidentiary document under his possession in accordance with this Proclamation or obstructs the implementation of this Proclamation is punishable, unless a higher penalty is prescribed under the Criminal Code, with rigorous imprisonment not exceeding 5 years and a fine not exceeding Birr 10,000.

62. Repealed and Inapplicable Laws

1/ The following are hereby repealed:

a) the Public Servants Pension Proclamation No. 345/2003 (as amended);

b)Article 12 and, with respect to pension coverage, the provision of sub-article (1) of Article 30 of the Privatization of Public Enterprises Proclamation No. 146/1998;

c)Article 12 and Article 21 of the Outgoing Heads of State and Government, Senior Government Officials, Members of Parliament and Judges Proclamation No. 653/2009.

2/No laws or customary practices shall, in so far as they are inconsistent with this Proclamation, have force and effect in respect of matters provided for by this Proclamation.

63. Effective Date.

This Proclamation shall enter into force up on the date of publication in the Federal Negarit Gazeta.

Done at Addis Ababa, this 24th day of June, 2011

GIRMA WOLDEGIORGIS

PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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Categories: Legislation, Pension law

Tagged as: Ethiopian pension law, House of People's representatives, pension fund, public servant, retirement, social security