ECC defers pension cuts on legalities

The government on Thursday deferred approval of pension cuts for existing pensioners due to questions about its legal mandate. However, it greenlighted a contributory pension scheme for new civilian employees, starting immediately, and for military personnel, starting next year. The military authorities did not agree to several proposals to rationalise pension benefits, leading the government to present a diluted pension scheme at the Economic Coordination Committee (ECC) meeting. The ECC deferred even this diluted scheme after some members questioned the ECC’s jurisdiction over decisions requiring legal and regulatory changes.