by Linda Straker
- Pensions (Disqualification) Act went into effect in 1985
- Appointed and contract public servants should benefit from pensions when reform is agreed upon
- On 15 November 2022, Government reinstated payment of pension
Acknowledging that the Constitution provides for mandatory non-contributory pension payment to public officers, Prime Minister Dickon Mitchell believes in the future that constitutional rights may be one on paper if the relevant trade unions and government do not embrace the necessary reform measures.
“The Constitution guarantees public servants the right to a pension, but if the State does not have the money to pay the pension, then there is a constitutional right that exists on paper and not in reality,” he said, explaining the pension reform approach that his administration will adopt to guarantee pension payment in the future.
“I am sure some of us have heard of governments going bankrupt. I am sure some of us have heard of cities in North America and so going bankrupt, and you usually go bankrupt if you are not fiscally prudent or if you are frankly spending more than you can earn,” he added.
The Prime Minister said that he has no quarrel with respect for the Constitution and respect for the entitlement of public servants; however, future payments can have devastating implications on the economy if corrective steps are not taken in a short period to make the entitlement a reality in years to come.
“If the statistics projection demonstrates that for future purposes, particularly if the size of the public service continues to grow, then the government, in reality, will not be able to pay the pension when they fall due 10 or 15 years from now,” said Mitchell who is also the Minister for Finance.
“We have to take corrective steps now to ensure that this is done and there are a number of ways in which we can do it. We can do it by discussion and an agreement between the unions that represent public servants and the government.” Mitchell explained that the agreement centred around reform will also require parliamentary approval.
“If that agreement happens, we can then go back to parliament. If there is an opposition hopefully with the concurrence of the opposition get the necessary legislative, and the necessary constitutional changes to make that reform happen,” he said.
Sharing the view that not only appointed public servants should benefit from a pension when reform is agreed upon, he said that consideration must also be given to officers who worked and continue to work on contracts.
“I am saying public servant in the classic sense, but there are thousands of persons who are being paid by the Government who are potentials, in the current construct can retire or leave government service and have nothing to get,” said the Prime Minister.
“So, for the current hundreds of persons who are on contract, if they work for 10 or 15 years and they reach 50 or 60 they are not getting anything, and I will like to think that they matter as citizens too and I will like to think they matter as workers too, and so part of the reform will be how do we address such persons.”
On 15 November 2022, the Government of Grenada reinstated the payment of pension to public officers who entered the service on and after February 1985. The 1983 Pension (Disqualification) Act which went into effect in 1985 stopped the payment of pensions to public officers from the consolidated fund and placed it in the hands of the National Insurance Scheme (NIS). However, in March 2022, this was determined to be unconstitutional by a High Court judge.
The name of the Act is the Pensions (Disqualification) Act – CAP 230A.