Identifier
Created
Classification
Origin
05BAGHDAD3822
2005-09-15 15:53:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

VETERANS' PENSION REFORM STALLED

Tags:  ECON ELAB IZ MCAP PGOV PINS 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003822 

SIPDIS

E.O. 12958: DECL: 09/14/2015
TAGS: ECON ELAB IZ MCAP PGOV PINS
SUBJECT: VETERANS' PENSION REFORM STALLED

Classified By: COUNSELOR FOR POLITICAL MILITARY AFFAIRS DAVID C. LITT F
OR REASONS 1.4 B AND D

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003822

SIPDIS

E.O. 12958: DECL: 09/14/2015
TAGS: ECON ELAB IZ MCAP PGOV PINS
SUBJECT: VETERANS' PENSION REFORM STALLED

Classified By: COUNSELOR FOR POLITICAL MILITARY AFFAIRS DAVID C. LITT F
OR REASONS 1.4 B AND D


1. (U) SUMMARY: On August 19, the Council of Ministers
reached a preliminary consensus to grant veteran status to
qualified personnel released from active duty in 2003. If
approved by law, it would bring the total number of military
pensioners in Iraq to nearly 800,000 (80-90% Sunni). Military
pension reform could have an enormous impact on giving Sunni
Arabs a stake in the developing political process. However,
no public action on this subject has taken place since the
meeting. END SUMMARY.

--------------
Dissolving the Army
--------------


2. (U) On May 23, 2003, the CPA Administrator dissolved the
Iraqi military per CPA Order Number Two. This action reduces
the possibility that Ba,athists in official positions could
interfere with reconstruction, and allow for the
reconstitution of the army from the ground up.


3. (U) An emergency monthly stipend was given to each of
the personnel released from active duty as a temporary form
of assistance. It was expected that by the end of 2004,
retirement-eligible stipend recipients would begin receiving
pensions, and most other stipend recipients would have found
jobs. Due to the slow growth in employment and delays in
pension reform, the stipend program was extended through the
end of 2005. The Iraqi government and Embassy have been
concerned about the ramifications of removing the stipend,
and have sought to extend the stipend through 2006.


4. (U) The stipend is given to approximately 350,000
people, many of whom were otherwise eligible for retirement
from the Iraqi military when they were dismissed. Recent
reform efforts have focused on codifying the status of the
population that receives this stipend, within a legal
framework.


5. (U) The Council of Ministers made the following specific
recommendations, per our translation from the Azzaman
newspaper on August 20:

a. Employees of entities dissolved under CPA Order Number Two
and military recruits who completed 15 years of service and
who have not been found to be former Ba,athist leadership
shall receive retirement benefits.

b. A temporary committee shall be formed, comprised of:
members of the dissolved military offices; representatives of
the Iraqi Veterans Agency; and representatives of the
Ministry of Finance Pension Office. This committee will
report directly to the General Secretariat of the Council of
Ministers and contact all those eligible for retirement
benefits, check their documents and ensure that all paperwork
is completed in accordance with regulations.

c. All names of those who apply for retirement benefits will
be subject to background checks for membership in the Ba,ath
party.

d. Any employee who served for less than 15 years of active
duty will be given a lump-sum payment of two months salary
for each year of service, based on that person,s final rank
at current salary.

e. The retired person will have the right to be reinstated
with a government entity in accordance with the applicable
laws and provisions.

f. Any employee found to have had significant Ba,ath party
ties following a de-Ba,athification review will be excluded
from all benefits.


6. (C) There was significant disagreement within the
Council of Ministers on item f, the proposal to deny benefits
to veterans with significant Ba,ath party ties. Deputy Prime
Minister Chalabi preferred that former Ba,athists be given
benefits. A majority of the Ministers agreed with Chalabi,
but the reform proposal has stalled. (COMMENT: Though no
evidence exists or public steps have been taken since the
August 19 meeting, it is likely that the Iraqi Ministers,
desire to give former Ba,athists benefits is an effort to
curry favor with Sunnis who were senior leaders in the Iraqi
government under Saddam Hussein, but who are willing to
embrace current political developments and the new Iraqi
government. END COMMENT.)
Satterfield