Motion on the Requirement of a Pension Act
The Deputy Chairperson of the Good Governance Committee (GGC), a member from Khamdang-Ramjar constituency, moved the motion on the need of a Pension Act to address critical challenges faced by the National Pension and Provident Fund (NPPF).
The Committee submitted that, although established in 2000 to ensure social security for government employees, the NPPF operates without a formal policy or autonomy, leading to governance and management issues. Key concerns included high attrition rates, limited membership coverage, declining dependency ratios, restricted investment opportunities, and lack of institutional autonomy. These challenges contribute to financial insecurity among retirees and a growing brain drain, with 4,710 civil servants resigning since January 2021. Given our aging population (65+ years) projected at 7.4% by 2027, the Committee emphasized the need for immediate policy interventions to strengthen NPPF’s role, make pensions more attractive, and ensure sustainable social security for retirees.
During the debate, Members acknowledged the need for a Pension Act as proposed by the Committee. The Finance Minister submitted that the government was already working on a draft Bill and that more time was required to conduct through consultations with the stakeholders.
The House adopted the motion as rephrased “The MoF to table a National Pension and Provident Fund Bill to Parliament” with a majority vote of 39 in favor, 2 abstentions, and 3 against out of 44 members present and voting. The House directed the Government to submit the Bill in the winter session after reviewing and through consultation with the relevant stakeholders.
