Retired civil servants have called on the government to allow them to access one third of their death gratuity while still alive.
The request was made yesterday, at the Public Service Pensioners Association (Pusepa) annual general meeting (AGM), adding a new dimension to ongoing debates on pension reforms and the welfare of retired public servants.
The meeting in Lilongwe insisted that accessing part of the death gratuity in advance would better address immediate needs rather than leaving the funds unused until death.
Speaking on behalf of the pensioners, Steven Ngwira said many retired civil servants no longer have beneficiaries who would benefit from the gratuity.
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According to Ngwira, most pensioners are elderly and that their children are grown and financially independent.
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He said releasing part of the gratuity while pensioners are alive would allow them to put the money to productive use and that it would help meet pressing needs, including healthcare, housing improvements or small investments, improving their quality of life in later years.
“Pensioners across the country are eager to hear about the one-third death gratuity being negotiated by Pusepa management so that they receive part of their gratuity before they die,” Ngwira said.
Pusepa president Genesis Malijana and member Queman Kabiya also supported the proposal, saying it would help pensioners cope in a highly inflationary environment.
Department of Accountant General Chief Accountant Andrew Mtonga reiterated that the law currently does not allow payment of death gratuity to the owner while alive.
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“A transferred pension refers to a five-year monthly pension benefit payable to the dependents of a deceased pensioner.
“This benefit becomes payable only upon the pensioner’s death and there are currently no procedures allowing pensioners to access these funds during their lifetime,” Mtonga said.
He added that the government is exploring the possibility of such access in the future, subject to consultations with relevant stakeholders.
“It has been noted that most pensioners have no dependents; as such, they argue that access to these funds would help address some of the challenges they are facing,” Mtonga said.
