by Linda Straker
- In principle, GPWU supports Government’s decision to reform pension reform plan
- Discussions set to be held 4–6 March
- Prime Minister Mitchell believes that an amendment or adjustment is required to ensure future of this constitutional right
Brian Grimes, President of the Grenada Public Workers Union (GPWU), said that in principle, the union is in support of the Government’s decision to reform the pension reform plan for public workers, especially for those who are on government contracts or are non-established workers in the service.
Government, through the Department of Public Administration, will begin a series of consultations on the Proposed New Pension Plan for Public Officers. The discussions are set to be held 4–6 March according to a flyer disseminated by the Government Information Service (GIS).
“The Grenada Public Workers Union believes that pension reform is necessary for its sustainability; what we are happy about, as it was mentioned at formal forums, is that the pension reform will not affect current people that are appointed by the PSC (Public Service Commission),” said Grimes who confirmed that the union has received a copy of the concept notes for the reformed plan.
“The pension reform will be for new entrants in the public service, and it will be for contract workers who before did not have an opportunity to get any form of pension. We are happy with this,” he said, disclosing that he cannot share information about the plan because the union has “yet to go through it with a fine-tooth comb,” he added.
In November 2022, Prime Minister Dickon Mitchell told Parliament that although pension payment for appointed public officers is a constitutional right, he believes that an amendment or adjustment is required to ensure that in the future, this constitutional right should not be one on paper.
“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, pointing out that growth in public service could result in Government’s inability to pay future pension to public officers using the existing non-contributory format.
“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 was then serving as Finance Minister. “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.”
The Prime Minister assured that if an agreement is reached, his administration will seek the approval of both Houses of Parliament for the legislative changes to a new pension plan.
