Pension Reform Committee Sets Two-Phase Strategy for Implementation
As it relates to the pension reform, there is a committee set up to revise and present proposals in moving forward. It is a reform that would be executed in two phases. President Flowers says that the pension reform, and its strategy will not be determined until next year.
Dean Flowers, PSU President: “From the pension reform committee based on the TORs we’re hoping that we can see at least a preliminary report coming out of that committee by January 15th detailing proposals for new entrants into the public service along with a possible proposed start date for that. As we had previously mentioned following the July meeting the proposal is for the reform to take two phases phase one for new entrants, phase two for existing or current public officers. We do not expect a preliminary report from the committee for the existing public officers until February I believe the date we agreed upon was February 15 and of course that preliminary report would pretty much form the framework that would guide the pension reform process for existing public officers. For new entrants it is and will be a bit simpler outside of course of the determination as to whether there will be the establishment of a fund a pension fund whether that will be deferred or a defined pension plan as well as the consideration as to whether it will simply be a contribution scheme that’s also another matter for consideration or that would be of consideration for the committee. So in terms of how this reform will take place we won’t know what those recommendations those specific recommendations will be until next year in 2024.”
While the pension reform, once approved and executed, will see a decrease in net salaries for public officers. It is a downside to the upgrading the pension scheme, as indicated by President Flowers.
Dean Flowers, PSU President: “The pension reform will see public officers taking home less money upfront in the immediate as well as when they retire considering that there is also a proposal for a reduction of the replacement rate from 67 to 50%. And so we must ensure then that the take home salary that we’re being paid currently would be sufficient or is adequate or is fair if it is that now we are going to be asked to tasked or mandated to contribute to our pension retirement fund. As you would know currently the constitution guarantees us a pension that is free of any contribution and so if it is that that term or that condition of service will change then something has to give on the front end which normally it is of course a revision of salaries.”