Coalition Provisional Authority
Contact: Victoria Whitford
Office of Strategic Communications
Iraqis to receive higher pensions
Baghdad, January 23 -- The Ministry of Finance today announced that pension payments to all public sector pensioners will increase with effect from 1 January 2004
Under the new arrangements, pensioners will no longer be paid a flat rate. Those with longer service and higher grades of service at retirement will be awarded higher pension payments.
First quarter pension payments for the lowest-paid pensioners are set to rise from 90,000 ID to a minimum of 95,000 ID. Those in receipt of a full pension with over 25 years’ service will see their pensions rise from 90,000 ID to a minimum of 125,000 ID for the first quarter.
Under Saddam Hussein, pensioners used to receive as little as 15,000 ID a quarter.
Pensioners will also once again be able to draw their pension from a neighbourhood bank branch rather than the central Pension Department, making it easier to access their money.
It will take some time to collect information on length of service and grade of pensioners at retirement. But all pensioners will receive the minimum increase with their February pensions. When their full entitlement is calculated, it will be backdated and paid to 1 January.
This change in the pension system will make future reform efforts easier. The Ministry of Finance is committed to ensuring that all public sector workers are adequately provided for when they retire.