by Linda Straker
- Public Sector Employees (Pension Fund) Act published in Government Gazette on 30 December
- Pension fund described as violation of public officers’ constitutional rights
- Trade unions representing public officers describe it as not favourable to established public officers
The Public Sector Employees Pension Fund Bill 2024 is now an Act of Parliament which came into effect on 1 January, according to the Commencement Order as published in an extraordinary publication of the Government Gazette on 30 December.
“The Public Sector Employees (Pension Fund) Act, No. 19 of 2024 shall come into force on the 1st day of January 2025,” stated Commencement Order number 38 of 2024, dated 30 December. The bill was approved in the Lower House of Parliament or the House of Representatives on 18 December 2024 and in the Upper House or Senate on 27 December 2024.
Prime Minister Dickon Mitchell, named as the Minister responsible for Public Administration, left the country on 27 December and is expected to return on 4 January 2025. The current acting Prime Minister and Minister for Public Administration is Minister Andy Williams.
This new pension fund is described by several legal minds, including 2 former Attorneys General, as a violation of the public officers’ constitutional rights as provided for in Section 92 of the Grenada Constitution. Trade unions representing public officers describe it as unfavourable to established public officers.
However, Minister for Legal Affairs and Attorney General Claudette Joseph said that the new pension fund is not in violation of the constitution and it is favourable in many ways to public workers. She told the Senate that one of the benefits is that under the new proposed scheme, the funds become vested after 5 years and even before the funds become fully vested an employee will be entitled to receive 100% of the contribution made to the fund.
“After 5 years if you are exiting the service, you are entitled to get 100% of your contribution and the government’s contribution after 5 years. So that you can walk away from the service after 15 years, 18 years and get your pension contribution because it is vested since you make 5 years, that is a benefit over the existing scheme because you don’t have to wait for 26 and two-thirds years to get anything.
“Because now if you are walking away before 26 and two-thirds years and you are 50, you get nothing; you get zero. Under this scheme all it takes for you to be vested is 5 years for you to get 100% of what is there in your account,” she said.
The constitution provides for Government to pay a non-contributory pension to established public officers upon retirement while non-established workers receive a gratuity payment. Currently, over 4,000 non-established/contract workers meet the criteria to join this new pension plan which will become the pension system for all new entrants into the civil service.
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Is the Pension Act itself constitutional? Why are decision-makers silent on this issue?