Targeting the Basic Retirement Pension: Samioullah Lauthan: “Reform, there must be!”

Samioullah Lauthan has been Minister of Social Security in the MMM-MSM government from 2000 to 2005. It was during his mandate that targeting in the process of allocating a universal pension to the elderly was proposed. This measure failed and partly led to the defeat of that coalition during the 2005 general elections. Over a decade later, targeting is back on the agenda and is once more being hotly debated.

There is the suggestion that universal pension will be targeted. What is your reading? Are you happy with the management of the NPF? While persons have contributed for more than 40 years in the fund, they are now told that pensions will be at choice?

This is the second time that the Hon. Pravind Jugnauth is coming forward with targeting. The last time as far as I can remember was in 2004, a few months prior to the general elections. This is quite a complex and highly emotional issue. We did not have enough time to explain to the population the rationale behind such a reform and the opposition had an easy run with its slogan “They are stealing your pension”. This was, according to me, a major cause of our defeat at the 2005 general elections. This being said, as developed countries – with very solid pension funds which could have sustained their funds for several decades from now – have since long started to adopt targeting in their pension reform process, we have no choice but to bring the necessary reforms based on best practices in the world.

If you were still Minister of Social Security, how would you manage issues stemming from the ageing population crisis?

First and foremost, prior to effecting the changes, there must be a well-planned, realistic and multi-media public relations to explain and convince the population in general and the elderly in particular, the advantages and limits of Pension Reform and Targeting. The elderly population must be brought to understand that they should think ahead and that it would be unfair on their children and grand children when they reach old age that there won’t be enough funds to provide them with Universal Pension.

The three most recommended measures are: (1) targeting (2) extension of retirement age and (3) judicious and rational investment of the excess funds now available, instead of placing same at fixed rate in the banks. Experience elsewhere has shown that applying only one or two of these measures have not had the expected results. All three measures should be implemented concurrently. As, theoretically, the general elections are not for tomorrow, it will be in the interest of the government to start its public relations, brainstorming sessions with all the stakeholders as soon as possible. The exercise is a very complex one and it will be a race against time. But reform, there must be! 

How do you see the situation regarding drug abuse in Mauritius – its importation and distribution, the policing of illicit trafficking, arrests and rehabilitation of drug addicts and abusers?

My position as assessor of the Commission of Enquiry on Drug Abuse and Drug Trafficking prevents me from commenting on the works of the said Commission but I can tell you that the Commission is covering all aspects of the drug phenomenon according to its Terms of Reference (TOR), which are very comprehensive. We are tackling all the issues pertaining to the routes and points of entry: the airport, the port, parcel post and along the coasts. The non-governmental organisations, representatives of various ministries and service providers, the ADSU, Customs, FSL, MRA, the health services, ex-addicts amongst others are making very valuable contributions to the Commission. We are also seriously looking at the challenges of the new synthetic drugs. I can’t say more at this moment.