DILI, 25 September 2025 — The National Parliament has unanimously approved a draft law to abolish lifetime pensions for members of parliament, former holders of sovereign offices, and related benefits.
The bill, numbered 11/VI (3rd), passed in general terms with 61 votes in favour, no against and zero abstentions during an extraordinary plenary session at the Parliament House, in Dili, on Thursday.
Parliament Speaker Maria Fernanda Lay announced the result during the voting.
The debate began with a report from Commission A on Constitutional and Justice Affairs, which confirmed the bill met the requirements to proceed to plenary discussion.
Under parliamentary rules, the debate in general terms focused on the principles and framework of the bill. The draft now moves to the parliamentary committee for detailed article-by-article discussion.
The bill was presented jointly by government parties CNRT and PD, together with opposition party KHUNTO. It seeks to repeal Law 1/2007 and Law 7/2007, which created lifetime pensions and other privileges for lawmakers and former sovereign office holders.
The proposal argues that ending these benefits is necessary to protect public finances and uphold the constitutional principle of equality by eliminating disproportionate privileges.
It also stresses that, with democratic development and stronger state institutions, public officials should be subject to the same pension rules as all other workers.
The measure applies to current and former MPs, as well as former holders of sovereign offices including the President of the Republic, the Prime Minister, government members, and the President of the Court of Appeal.
It ends all current and future payments of lifetime pensions and requires the immediate return or cancellation of benefits such as official residences, service vehicles, drivers, escorts, fuel and logistical support.
Pensions already received before the law takes effect will not be reclaimed, in line with the principle of good faith and legal certainty.
However, any future entitlements are cancelled once the law comes into force.
The legislation will apply retroactively from 20 May 2002, the date of Timor-Leste’s independence.
The government must issue regulations within 30 days of the law’s publication to ensure full implementation. The draft law contains seven articles in total.
During the same session, parliament also debated Draft Law 10/VI (3rd) on social security for holders of sovereign offices, proposed by FRETILIN and PLP.
That proposal was rejected, with 22 votes in favour, 38 against and one abstention.
TATOLI
