Unions say government is attempting to take control of their pension contributions

Aside from the passport scandal that has grabbed the attention of the nation, there is another matter that is like a time bomb waiting to explode before the government. Information to News Five is that government is proposing to enact the Belize Pension Act which involves a bundle of legislation through which government will be attempting to wrest control of pensions of employees of B.E.L., B.T.L., Social Security, Central Bank and D.F.C.  From what we have learnt from the unions, the Belize Pension Act seeks to restructure, regularize and standardize private pensions. The trouble is that there have been no consultations with the unions whose members will be directly affected. And their fear is that if passed into law, it will essentially open the way for government to legally “take over” the control of employees’ contributions and will determine such issues like investment.   The proposal also does not include the so called Grand-Father clauses; thereby removing the management of pensions by the individual unions and management.  It also alters the retirement age so that many persons, who have planned on collecting their retirement payments at fifty-five, will have to wait until they are sixty-five years. There are also concerns that the other small benefits like the Christmas Pension Loan and the Educational Loan would be lost and that contributors would only be able to access a lump sum total of their pension if and when they reach the ripe age of ninety years. From what we gather, the unions are galvanizing and are preparing to fight any plan that will take away the management of their contributions. The issue has quickly become such a hot potato that the government finds itself attempting to appease the unions.