Timor-Leste’s parliament has voted to reduce the Annuity Law by 10-40 per cent from its current 100 per cent pension scheme entitlement for government employees. It stands waiting for promulgation by President Taur Matan Ruak, who has vehemently called for the scheme to be scrapped altogether, and said he would veto it.

 Laurentino Alves, said Luta Hamutuk would continue to oppose the existence of the government compensation pension scheme on the grounds that it discriminated State budget spend, but said the President had no other option but to support the new Annuity Law or risk maintaining the current scheme.

The president has said he would respond to the Annuity Law “in the future,” saying: “I have a dilemma (about the Annuity Law). There is a possibility I will answer it in court.”