The Council of Ministers today approved the multi-pension bill submitted by the Minister of Finance, incorporating two key amendments demanded by the Parliamentary Committee on Finance.

As Brief reports, the two amendments are:

• The exemption of all gratuity payments to state officials from taxation.

• The adjustment of the gratuity coefficient for future Members of Parliament, replacing the current rate of 1/4 with a new rate of 1/3.

An extraordinary session of the relevant Parliamentary Committee will follow to further discuss the legislative details.

The tax exemption for lump-sum or gratuity payments is already a common practice for employees retiring from public or financial institutions under voluntary exit schemes.

The controversial issue of multiple pensions for public officials has been under discussion for the past two years.

The Parliamentary Committee on Finance has committed to bringing the matter before the Plenary before Parliament adjourns for the summer recess. It is worth noting that, aside from the government’s bill, a package of legislative proposals from various political parties will also be submitted to the Plenary. The key points of the proposed legislation include:

• Pension payments for state officials will begin at the age of 65.

• A state official serving in office will not be eligible to receive a pension and a salary simultaneously.

• This regulation, if passed, will be implemented gradually to avoid potential constitutional issues.

Additionally, Members of Parliament who have served one term will be eligible to receive their pension at the age of 60. If re-elected, they will receive the second part of their pension, corresponding to their second term, at the age of 65.