25 October 2003

                                                                                       MOF # 10-02

Policy on Payment of Public Sector Pensions and Benefits for the Fourth Quarter of  2003

This policy applies to public sector pensioners registered with the Pension Administration of the Ministry of Finance, to the public sector pensioners registered since 1990 in the Kurdish administrations, to the “private sector” or contributory pensioners and family benefit recipients of the Ministry of Labour and Social Affairs, and to the recipients of the benefits for Anfal victims, disabled and families of martyrs in the Kurdish areas.  

Emergency Payments.  Following the two emergency payments of $40 to support pensioners which were made in the period April –June, Ambassador Bremer approved a flat rate pension payment of $60 to all public sector pensioners, to all private sector pensioners and family benefit recipients, and to all benefit recipients in the Kurdish areas for the period July-September.  

Fourth Quarter Pension Payment.  The Minister of Finance has now announced a further flat rate pension payment for the period October-December to be paid in new Iraqi dinar at the rate of 90000 new Iraqi dinar to all public sector pensioners, private sector pensioners, family benefit recipients and benefit recipients in the Kurdish areas.  In addition the Minister of Finance has announced the payment of a Ramadan bonus of 30000 dinars to all pensioners and other recipients to be paid together with the fourth quarter pension payment.  Payment will take place from November 1 in accordance with local arrangements, and in the denominations determined by the local director of the pension administration.   In Baghdad civil pensioners will be paid in November and military pensioners will be paid in December. 

Type of Pensioners	Monthly pension under previous regime, ID	Third quarter pension payment, USD	Fourth quarter pension payment, ID
More than 30 years service	8000	$60	90000 plus Ramadan bonus of 30000
More than 15 years service	5000	$60	90000 plus Ramadan bonus of 30000
One dependent	5000	$60	90000 plus Ramadan bonus of 30000
More than one dependent	7500	$60	90000 plus Ramadan bonus of 30000

 

Procedure for payment of pensions and benefit

Financing.  Provision of funds to pay pensions and benefits will be the responsibility of Ministry of Finance officials, acting in accordance with the established policy, through the Treasury account.

Payment. Payments will be executed through the banking system where possible.  In these cases the funds will be sent to the relevant bank and the bank will make the payments to the pensioners against an official list of pensioners provided by the Pensions Administration.  If is it not possible, pensions will be paid through pay sites staffed by the Pensions Administration of the Ministry of Finance and benefits will be paid through pay sites staffed by the Ministry of Labour and Social Affairs.  The pay site should be designed to be secure, convenient and efficient, and minimise the time that customers spend in queues.  The Director General of Pensions, Ministry of Finance will issue a circular to all Pensions offices setting out details of the payment of pensions. 

Verification of identity. Each pensioner and benefit recipient shall be expected to show three forms of identification to qualify for payment, including the pension ID card and the ID card.  In exceptional cases, the director of the pension administration or the director of the MOLSA office may authorise payment on the basis of two forms of identification, providing proper records are kept of such cases.  Any person caught using false ID to obtain a pension or benefit by fraudulent means shall be subject to criminal charges.  

Verification of payment.  Upon receipt of the pension, each pensioner should sign the official list of pensioners against their name in order to provide verification that payment has been made.

Payment of Backpayments and Recovery of Excess Pensions.  Employees who have not received their full pension or benefit payment for the third quarter of 2003 shall be entitled to payment of the balance.  Any double payment of the previous quarter’s pension or benefit shall be deducted from the fourth quarter’s pension or benefit payments.  For the purpose of calculating payments and deductions for back payment of previous quarters’ payment in dollars, a conversion rate of 2000ID : 1USD should be used.

Accounting for previous quarter payment.  The Pension Administration of the Ministry of Finance and the local office of the MOLSA shall provide information to the local Treasury Office on the number of pensioners and benefit recipients paid in the previous quarter. Information should include funds received, funds paid out, number of pensioners/benefit recipients paid and the balance remaining. Unused funds will be redeposited in the bank from which they were withdrawn and a receipt filed with the local Treasurer.  This information should be sent to the Director General of Account in Baghdad to allow a full accounting of all payments made.   

New Pension Arrangements.  A committee established by Ambassador Bremer, with representation from various Iraqi ministries, is currently considering new pension arrangements that may be introduced at the beginning of 2004.  

Points of Contact for Further Information:

Justin Tyson, Adviser, Ministry of Finance, tysonj@orha.centcom.mil

John Hanley, Adviser, Ministry of Finance hanleyj@orha.centcom.mil