Time for a decision on pension scheme

Premier Dr Natalio Wheatley has stressed that it is time for a review by the government on the issue of a contributory pension scheme for public servants.

The Premier was at the time addressing concerns from Sixth District Representative Myron Walwyn regarding the exclusion of pensioners from the recent public officer salary increase.

Walwyn stressed the impact of cost-of-living adjustments on the vulnerable group and urged the Premier to consider immediate relief for pensioners, emphasising their contribution to society and their foundational role.

Premier Wheatley expressed a strong commitment to addressing the needs of government pensioners who were not included in the recent salary review that earmarked approximately $10 million for public officer salary increases.

The Premier also acknowledged the rising cost of living, which was the basis for the public officer salary increase. However, he emphasised the critical situation of the current non-contributory pension scheme. The current scheme faces an unfunded liability, meaning there’s not enough money to pay out future pensions.

The proposed solution is a contributory pension scheme where both employers and employees contribute funds. This approach aims to create a more sustainable system for future retirees.

“The decision as it pertains to the introduction of a contributory pension scheme would be one for the governor, and of course, because we have to fund it, ultimately Cabinet must agree to that and then the House of Assembly must make the resources available to make it a reality,” Dr Wheatley said.

The Premier, who is also the Finance Minister, noted an annual addition of $1.7 million to the pension bill, with $7.3 million paid out in pensions at the end of 2023. He explained that “arbitrary increases” without proper analysis could further jeopardise the scheme’s sustainability. He also pointed out the importance of actuarial studies to ensure long-term viability.

Meanwhile, Dr Wheatley suggested this reform would also benefit lower-paid public officers who might not have been able to afford contributions previously, but with increased salaries, could now participate.