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| PCHR Palestinian Centre for Human Rights PRESS RELEASE |
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Ref: 71/2005
Date: 12 June 2005
Time: 12:30 GMT
PCHR discusses the General Retirement Law
Approval of the General Retirement Law is an important step towards uniting Palestinian systems of retirement and the Executive, the Legislature and beneficiaries are encouraged by PCHR to monitor the enforcement and implementation of the law.
On Sunday, 12 June 2005, PCHR’s Economic, Social and Cultural Rights (ESC) organized a workshop at PCHR’s offices in Gaza City on the General Retirement Law (Law 7 of 2005). Dr. Sa’di al-Krunz, Head of the Budgetary and Financial Affairs Committee of the Palestinian Legislative Council (PLC); Mr. Hijazi al-Qershalli, Legal Advisor of the General Personnel Council; members of the Association of Retired People; and representatives of the public sector participated in the workshop.
The purpose of the workshop was to discuss the General Retirement Law and whether it can provide citizens and their families with appropriate living conditions in cases of unemployment, illness, old age or any other unwanted circumstances that deprive them of means of living as noted by ESC researcher, Khalil Shahin, in his opening remarks. PCHR believes that discussing the law will contribute to its development and implementation to ensure social security for retired employees.
Dr. Sa’di al-Krunz, Head of the PLC Budgetary and Financial Affairs Committee, explained the process of the approval of the law, stating that the goal was to promulgate a comprehensive and united law for all employees of the public and private sectors and NGOs in the Occupied Palestinian Territory (OPT). Mr. al-Krunz discussed previous laws that governed retirement, including the law of retirement of military staff which was ratified last year. Then, he highlighted mechanisms of retirement accounts and the formation of Palestinian Retirement Agency. He also indicated that the new retirement law consists of two systems: the system of specific benefits and that of specific contributions. Additionally, al-Krunz discussed opening five special accounts to implement the new law. He also asserted that the new law has dealt with many failures of previous retirement laws.
Mr. Hijazi al-Qershalli, Legal Advisor of the General Personnel Council, explained that the General Retirement Law aims at providing maximum social insurance for employees and ensuring appropriate living conditions for them and their families. He emphasised that the implementation of the law requires resolving all problems that have obstructed the implementation of the amended Civil Service Law. Mr. al-Qershalli criticised the inclusion of NGO employees in the General Retirement Law as NGOs have different laws and systems related to employees. He also criticised some provisions of the law, including the non-retroactivity of the law which derogates from the rights gained by some employees, and the lack of a body that can ensure that the Palestinian Retirement Agency will continue to provide services for retired employees in cases of financial deficits. He further criticised that the law does not provide insurance for families of employees who die or prove to be medically disabled and that the law does not provide for death and funeral payment. He called for calculating severance payment on the basis of the last salary of an employee rather than calculating the average salary of the last three years to avoid decreasing the retirement payment.
Mr. Mohammed al-Jadi, Deputy Head of the Association of Retired People highlighted positive aspects of the new law, particularly with regard to providing appropriate living conditions for retired employees and their heirs following death. However, he criticised that the law does not discriminate between men and women with regard to specifying the obligatory age of retirement, contrary to modern retirement laws. Those who obtain early retirement have an annual payment that is 4% les than that received at the age of obligatory retirement.
Mr. Yousef Harb, former Director General of Salary Department of the General Personnel Council suggested amending the law to exempt contributions of those who participate in the retirement system from income taxes. He also suggested amending article 28 to allow retired employees to obtain governmental contributions in addition to their contributions. Further, he called for correcting the table included in article 35 as it has clear mathematical mistakes.
Mr. Sa’id al-Mudallal, former Director General of Employment Department of the Ministry of Labor pointed out the text of the new law needs to be amended to remove ambiguity. He suggested using consistent language throughout the law to avoid misunderstanding. He also suggested adding some provisions, such as the definition of permanent or temporary medical disability.
In the end of the workshop, the attendants discussed all these notes and called upon all parties to contribute to the implementation of the law in order for all people to be able to identify its positive and negative aspects.
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Palestinian Centre for Human Rights
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