RCSC implements pre-birth maternity leave and can carry over annual leave

Dechen Dolkar

The Ministry of Finance announced on November 14 that the Cabinet approved an extension of the pension vesting period from 20 to 23 years on October 31, 2024.

The new eligibility rule for lump-sum pension withdrawal applies only to civil servants who have not joined the pension scheme and have not completed 20 years of service as of November 1, 2024.

The revision will not apply to members who have already entered the existing pension scheme and completed 20 years of active service as of November 1, 2024.

The Royal Civil Service Commission had submitted a proposal to the Cabinet in August this year, recommending an extension of the service period required for lump-sum pension withdrawal from 20 years to 23 years.

With this extension, civil servants who have not completed 20 years of active service by the effective date will now need to serve an additional four years to qualify for a lump-sum pension withdrawal.

Previously, civil servants could withdraw their pension in a lump sum before reaching 20 years of active service. After 20 years, they were automatically enrolled in the pension scheme and received monthly payments from their provident fund after retirement.

The Chief Executive Officer of NPPF, Dorji Penjor, said that the extension was mainly due to a large number of civil servants resigning, with many feeling that the pension scheme was not attractive.

He said that, in the short term, this change could benefit both civil servants, by encouraging them to serve for a few more years, and the NPPF, by allowing it to accumulate pension funds for a few additional years due to reduced immediate cash outflow.

He added that, in the long run, the extension would have both positive and negative effects on the fund. However, it may not necessarily encourage more people to opt for the pension scheme, which is the ultimate goal of the NPPF.

Records from the NPPF indicate that from 2022 to August 2024, more than 7,500 members resigned, resulting in a total payout of Nu 5.15 billion in refunds. Among these, 553 members resigned after serving between 19 and 20 years, to whom Nu 805.24 million was refunded.

As of now, 635 civil servant members have served between 19 and 20 years, with an accumulated provident fund and pension balance of Nu 968 million.

The monthly contribution amounts to over Nu 400 million

RCSC implements new leave policies for civil servants

Meanwhile, the Royal Civil Service Commission (RCSC) has amended the Bhutan Civil Service Rules 2023 to support the well-being of women during childbirth and provide greater flexibility in the utilisation of annual or casual leave for civil servants.

At its 23rd Commission meeting on November 5, a decision was made to grant civil service expectant mothers 14 days of pre-birth maternity leave. This new provision enables them to prepare for childbirth without using their standard maternity leave, supporting maternal and child health by reducing pre-delivery stress.

Additionally, it was decided that civil servants can now carry over unused leave into the following year, up to a maximum of 30 days as leave reserves. However, this leave reserve cannot be encashed. This revision aims to provide civil servants with more flexibility, allowing them to save leave for unexpected circumstances.

Civil servants can now carry over up to 30 days of unused leave into the following year as a leave reserve, though this reserve cannot be cashed out. This change offers greater flexibility, allowing them to save leave for unexpected situations.