In a significant move to tighten fiscal discipline, East Timor has officially abolished lifetime pensions for its members of parliament. This decision marks a major policy shift aimed at reducing long-term public expenditure and promoting greater financial responsibility within the government. The measure applies to current and future MPs, ensuring that the state can allocate funds more effectively toward critical sectors such as healthcare, education, and infrastructure.

Officials highlighted several key points behind the reform, emphasizing transparency and equitable resource distribution. Among the primary goals are:

  • Cutting excessive long-term liabilities linked to pension obligations
  • Encouraging public trust by demonstrating fiscal accountability
  • Aligning with international standards in political remuneration policies
Previous Pension Benefits New Policy Highlights
Lifetime monthly payouts One-time retirement gratuity
Uncapped financial commitment Fixed budget allocation for MP benefits
Automatic eligibility after term Eligibility subject to performance review