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Jun 23, 2023

Will Contributory Pension Take Effect on July First?

Dean Flowers

Will contributory pension form part of the discussions at the P.S.U.’s A.G.M.? News Five has received information to suggest that the Briceño Administration intends to begin this pension reform mechanism effective July first.  P.S.U. President Dean Flowers confirms that back in February, this suggestion was made to the Joint Union Negotiating Team, but that it was never negotiated. And so, he believes that the proposed timeline is not feasible. Here’s how Flowers explains it.

 

Dean Flowers, President, P.S.U.

“To be clear, that disclosure was made on February fifteenth by the government.  Since then the government has not met to cement the commencement of that contributory program. Following that February the fifteenth meeting, there was to be subsequent meetings for us to agree on that timeline and for us to agree on what would be the rate of contribution – whether it will be the four percent which is the target percentage for everybody, whether it would be four percent for new entrants, or whether it will be the point two five of a percent for everyone including new entrants. Because I can tell you that those who are in the system will not immediately commence at the four percent; they would start at point two five and then annually that would increase incrementally by point two five so over sixteen years, we would have arrived at that four percent. These things have not been qualified cause there have not been any subsequent meetings of the joint unions and government to cement this proposal. Additionally, we have to look at extending or revamping the entire pay scale to accommodate the proposed extension of the retirement age. Additionally for public officers who are already eligible for pension, there has to be some conversation in terms of how do we treat them and whether or not based on their age, whether they will be exempted or be required to contribute and more importantly at what point in time. So nothing has been agreed to, nothing has been tabled in black and white from the government. What we know has been tabled is a proposal from the IMF. So I don’t think that it would be fair for new entrants or fair for anyone for that matter for anything to be effected on July the first.”


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