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Jun 12, 2019

Does S.S.B. Need a Trigger Mechanism to Keep Fund Afloat?

Colin Young

According to S.S.B.’s Chief Executive Officer, Doctor Colin Young, the new pension and contribution scheme will not impact existing pensioners. As it stands now, the fund is approaching the ‘period of equilibrium’ where total expenditures equal total revenue and in order to avoid arriving at that stage, Doctor Young says that there is consideration for a  trigger mechanism that would ensure the sustainability of the fund pass 2021.

 

Dr. Colin Young, C.E.O., S.S.B.

“In order to comply with one of the demands from the business was to look at the issue of a trigger. We now have to bring in the actuary and other specialists to look at how we can design it. Then we have to consult, we have to go back to the partners for them to agree on a trigger because an actuary may say that in order to avoid going over the cliff you need to do a half percent increase and that has to last for a period of time.  We have not yet done those analyses. This does not impact the self employed scheme. We are actually working with the ILO to try to redesign that entire program because as designed it is already insolvent meaning that persons collecting a pension from the self employed scheme the amount of money that we pay out is far in excess what they pay in to the fund.”


Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

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