13 Feb 2009

Tonga's PSA unhappy some MPs have taken money out of fund

9:03 am on 13 February 2009

Tonga's Public Service Association says it's come to their attention that members of the government have prematurely withdrawn their pensions from the retirement fund.

The PSA Secretary-General, Mele Amanaki, says along with payrises of up to 160 percent that cabinet granted themselves last year, it's a case of the government giving itself special treatment.

Tonga's public servants contribute five percent of their pay to the retirement fund, which the government matches.

Mrs Amanaki says that under the Retirement Fund Act, one can only get the money when they reach retirement age or are deemed by a doctor to be mentally unfit for service.

"So I am not sure which option they took, the mental one. But when we followed it up with the acting CEO of the retirement fund board, he informed us the reason why they were given their retirement fund was that firstly they are no longer public servants, secondly they have got a new retirement fund programme with government, that is against the law."

The PSA has written to the Retirement Fund board asking them to rescind the decision.