by Linda Straker
- Pension payment system under 1958 legislation will not be sustainable
- Trade union movement called to sit with current administration and work out acceptable method
- EC$60 million requested to pay retroactive pensions in Supplementary Appropriation Bill
- Pension disqualification law which came into effect in 1985, was a constitutional violation
Legal Affairs Minister Claudette Joseph has acknowledged that the pension payment system for retired public officers under the 1958 legislation will not be sustainable. She wants the trade union movement to sit with the current Dickon Mitchell administration and work out an acceptable method.
“If we regularise contract workers across the board without at the same time treating with pension reform, what do we do? We bloat the public service; we expand the public service and in so doing, the amount of people who will be eligible for a pension.” Joseph made her contributions in the Upper House in support of the Government’s EC$194 million supplementary appropriation bill during a sitting on Tuesday, 11 October 2022.
“So, we call on our friends in the labour movement to sit with us and work out an acceptable mode going forward where everyone will be happy; where we will not leave an unbearable financial burden for those who come after us, and where those who retire going forward will not have to retire into poverty,” she said.
The government has requested EC$60 million to pay retroactive pensions to hundreds of public officers in the Supplementary Appropriation Bill. The payment has become necessary for the State following a March 2022 court ruling that said the pension disqualification law which came into effect in 1985, was a constitutional violation.
“So, we are committed to honouring the findings of the court, and our first step, therefore, is to pay the people who will be immediately entitled to enforcement of that judgment, that is the people who have already qualified for a pension,” said Joseph who is also the Attorney General.
The former Dr Keith Mitchell-New National Party administration hired hundreds of staff under contractual arrangements, and during the recent election campaign, the current Dickon Mitchell-National Democratic Congress team promised that there will be one public service with everyone appointed by the Public Service Commission.
However, Joseph said that if the current administration fulfills that promise, the public service will be bloated, which can do irreparable damage to the economy regarding future pension payments.
“Let us be straight; we got to be straight with the nation. Contract work and pension reform must go together because we commit to paying the retroactive pension and we are doing so. We understand the importance of the ruling of the court. As not to do severe damage, perhaps even irreparable damage to the economy, in the long run, we must work out a pension plan going forward that is sustainable,” she said.
“As it stands now when people retire they are entitled to NIS, that is public servants I mean, …plus government pension, and government pension is a noncontributory pension. Which means the government alone pays everything into the pension fund plus under the NIS law the Government pays 6%,” she said. She reminded members in the House that if there are no changes to the current pension format, the payment “will be a really hefty sum that the IMF and everybody else has already warned is not sustainable going forward.”
What a strange awaking, the sudden realization of a misguided dream. Today your government realizes they fool the people knowing full well that the economy will never be able to sustain itself after the current pension agreement, yet they encourage it anyway. all because of greed, jealousy, and your love for power, now you dare to stand before the world and ask for re-negotiations.
Your leader stands in parliament and boasts of that same agreement without a clear understanding that so many of the things that he boasted about were just a rehash of others’ previous efforts, and the gap between what he imagined he has done and what he did is a good indicator of his weakness. Your government lied to the people, now you need a way out of something that they created; however, you forget one thing, Grenadians are not stupid.
The most upsetting thing is they would have cried down the NNP and Keith over this sameeee issue… Now they won the election and boom…. The truth will always come to light and the thing is during the NDC campaign they knew this… However, this sis what happen to a nation of people who don’t use common sense and good judgement.
There is alot unrealistic campaign promises that will eventually come to light this is only one.
you just figuring this out?
As a society, one nation under the Grenadian banner, we all need to put the politics aside for the greater good of all. I definitely am concerned about my future after retirement, and certainly about the welfare of those who come behind me. The pension issue has been a vexing one for quite some time and I am glad that it is now a front burner topic. As to the feasibility of the proposed resolution to this situation the jury is still out. However, I must say that pension reform is a national issue affecting all. I have always said that if reform is not adopted, the pension benefit scheme in its present format WILL collapse, to the detriment of our entire nation. Who does not need some extra money? We all do. However, as my mom always hammered into our heads, ” live and let live”. If we do have to criticize, let’s do so constructively. Those of us who believe that God answers prayers, let’s go to Him. Let us create a national discussion so that all citizens can be adequately sensitized re, this most important issue.
LMAO I thought the saviour would of made all things great…. When it was being said before, it was Keet wicked…. I wonder what could have changed over night
Someone was singing that same song before elections and was ridiculed and called all kinds of derogative names, Say anything to win elections is the order of the day. Its a shame how they continue to fool a large portion of the society. “SAD”
Imagine a world where the government removes pension and have public workers get a little more from NIS(but pay more). I will laugh so much.
and if that’s done(or anything similar) I will never listen to another politically biased union for the rest of my life.
Politian’s will say anything to get into power
The NNP preached this for years, you fought against it , won the election and look at you now