Liberia: House Rejects Senate’s Money-Making ‘Pension Bill’  

Some members of the House of voting to reject the bill

… If it had been accepted by the House, it would have led to certain public officials benefiting from the 50% monthly pension annuity, measured against their last gross pay before retirement.

The House of Representatives has struck down a bill from the Senate that would have allowed the government to pay some public officials a pension annuity that is equal to  50% of the highest gross salary.

The money would then be paid in equal monthly installments, provided that the​ official has served his term and honorably retired to private life, and is not in any way gainfully employed by the government. The position of the Speaker, Deputy Speaker, Pro-tempore, President, Vice President, Chief Justice, and all Associate Justices, as well as circuit court judges, were the ones expected to benefit from the 50% monthly pension annuity. 

But for Senators and Representatives, the monthly annuity is however determined by terms factors: the longer you stay, the higher it gets.  And in the time of death, the surviving spouse of the deceased official could then become eligible for a pension and entitled to receive an annuity equal to 50% of the pension annuity, as it would have been done during the life of the said spouse. 

If there is no spouse, the annuity provided for the surviving spouse shall be paid in equal proportion to each of the children of the deceased officials until age 21.  The clause does not cover Senators, Representatives, Associate Justices Circuit Court, and Specialized Court Judges, but benefits the Chief Justice.

The Chief Justice's surviving spouse however would then become eligible to receive an annuity equal to 25% of the pension Annuity of the Chief Justice during the natural life of the said spouse.

The bill, which the Senate passed on August 30, also called for the surviving spouse of the President, Vice President, and Chief Justice to be entitled to a personal staff and facilities for the remainder of the natural life of said spouse — and the amount allowed for this purpose shall not be less than twenty-five percent (25%) of the pension Annuity when they are deceased.

While annuity varies slightly, it, however, remains constant on the issues regarding being gainfully re-employed upon retirement.  The Senate rejected the bill and called for the annuity payment in such a case to be “suspended until the employment is terminated or has retired; in which case, the right is given to choose the greater of the two annuities.”

“Provided, however, that the minimum duration of such re-employment is equivalent to at least a legislative and presidential term of 6 years, in order to be eligible for a second annuity,” the Senate bill reads. “If he/she is reemployed by the Government as a civil servant, he/she shall be subject to provisions of the Civil Service Agency Act.“

“An annuitant who, upon being re-gainfully employed by Government, the annuity previously granted shall be suspended, and if an annuitant qualifies for the second Annuity based upon the second termination of services with the Government, the annuitant shall have the right to choose whichever annuity is greater.”

But for the Judiciary, the bill noted that the minimum duration of such re-employment is at least six (6) years — disregarding the issue of the term since judges in Liberia serve almost for life. They have to reach the age of 70 years before retirement. 

Meanwhile, the Senate action comes as Liberia, despite its relatively small population, suffers from widespread poverty and inequality.  Poverty affects 50.9 percent of the population, with the burden heavier in rural areas, according to World Bank data. 

This translates into roughly 2.3 million Liberians who were unable to meet their basic needs and around 68 percent of the country's poor live in rural areas where poverty incidence is 71.6 percent, more than twice as high as in cities (31.5 percent),” the bank said. In addition, 44 percent of the population lived under the extreme international poverty line of $1.90 per day, and that poverty is projected to increase over the next few years," the bank said.

It also comes as Liberian lawmakers and other public officials earn well-paid salaries with fabulous allowances, which monthly exceed US$5,000 on average.  The Senate decision is happening at a time when  Liberia still belongs to the group of low Human Development nations with a Human Development Index (HDI) of 0.48, ranking 175th out of 189 countries (Human Development Report, 2020). 

The President, Vice President

But this did not stop the Senate from enacting the bill titled an act “adopting an integrated pensions and benefits scheme for certain categories of officials of the government of the republic of Liberia and repealing and or amending certain portions of title 26, Legislative Act, Title 12, Executive Law and Title 17,  Judiciary (1972) and the 2003 act,” to grant upon themselves fabulous retirement packages.

The Senate, in Chapter ​three of the bill, which talks about pension and benefits schemes for elected officials of the executive branch, said that upon the President’s and Vice President's retirement after serving a full term of six (6) years, they are entitled to fifty percent 50% of the highest gross salary per annum.

However, the President and Vice President at that time should not in any way be gainfully employed by the Government to qualify for such pension annuity, which is payable monthly.

“In addition, he/she shall be entitled to a personal staff and facilities for the remainder of his/her natural life, and the amount allowed for this purpose shall not be more than fifty percent (50%) of his/her last gross annual salary, paid in equal monthly installments,” the bill said. “Additionally, he/she shall be entitled to the police or other state security protection and other services around the clock. The annuity and the other benefits and services shall be for the rest of his/her life.”

Speakers, Deputy Speakers 

In Chapter two, which talks about the House, the bill noted that a Speaker and Deputy Speaker who honorably retired to private life and not in any way gainfully employed by the Government, shall “receive from the Government a pension annuity equal to 50% of his/her last highest gross salary earned as Speaker, per annum, paid in equal monthly installments.”

“​In addition, the Speaker and Deputy Speaker shall be entitled to personal staff and facilities for the remainder of his/her natural life, and the amount allowed for this purpose shall not be more than twenty-five percent (25%) of his/her Annuity, per annum. Additionally, he/she shall be entitled to police other state security protection, and other services around the clock. The Annuity and the other benefits and services shall be for the rest of his/her life.”

Representative packages 

In Chapter 5 of the bill, the Senate had it that ​ elected officials of the House and Senate who have served for a term of 6 years and honorably retired to private life, and not in any way gainfully employed by the Government, shall receive from the Government a pension annuity equal to ten percent (10%) of his/her highest gross salary earned as an officer of the Legislature, per annum, paid in equal monthly installments. 

It added that an elected officer of the House and Senate who serves for two consecutive elective terms (aggregate of 12 years), and retired to private life “and who is not in any way gainfully employed by Government, shall receive from the Government a pension annuity equal to thirty percent (30%) of his/her last highest gross salary earned as an officer of the House of Representatives and/or the Senate, per annum, paid in equal monthly installments.”

“An elected officer of the House of Representatives and/or the Senate serves for three (3) consecutive legislative terms (eighteen years) or more, who honorably retired, and who is not in any way gainfully employed by the Government shall receive from the Government a pension Annuity equal to fifty percent (50%) of his/her last highest gross salary earned as an officer of the House of Representatives and/or the Senate.”

The Chief Justice, others 

Also, Chapter 4 of the bill, which focused on pension and benefits for the judiciary, stated that the Chief Justice and Associates Justice the Supreme Court upon retirement and returning to private life and is not in any way gainfully employed by “Government shall receive from the Government a pension Annuity equal to fifty percent (50%) of his/her last highest gross salary per annum, paid in equal monthly installments.”

However, only the Chief Justice, accordingly, would be entitled to a personal staff and facilities for the remainder of his/her natural life, as well as police or other state security protection and other services around the clock, and that “annuity and the other benefits and services shall be for the rest of his/her life. 

And for Circuit Court and Judges of Specialized Courts, they were expected to have received from the Government a pension Annuity equal to 50% of the last highest gross salary per annum, paid in equal monthly installments, if the Senate bill has become law.