By RASHAD ROLLE
Tribune News Editor
rrolle@tribunemedia.net
PRIME Minister Philip “Brave” Davis said public consultation on draft legislation to create a contributory pension plan for all public sector employees will begin before the end of this month as the government looks to tackle an issue the International Monetary Fund has long called unsustainable.
During his mid-budget contribution yesterday, Mr Davis said this is one way the government aims to reduce fiscal risk.
Currently, civil servants do not contribute to their pension.
In 2018, the IMF said accrued government pension liabilities totalled $1.5b in 2012 and would rise to $3.7b by 2030 as the population ages.
The IMF called for reforms that involve “moving to a contributory regime in the near term and to a defined-contribution scheme in the medium term”. This would require civil servants to contribute a portion of their salary to fund their retirement rather than having this financed 100 per cent by taxpayers through the annual budget as is done currently.
Comments
themessenger 2 months ago
This is highly unlikely to happen in reality as it would be a cyanide pill politically for the Davis administration.
sheeprunner12 2 months ago
It is not just the public service workers pensions that are dragging down the government fiscal planning, it is the SOEs and their gaudy salaries & perks, the scores of consultants and PEPs and the Gussiemae Cabinets over the past 30 years.
So don't just blame the lowly paid civil servants. Most only collect $300 per month pensions anyway.
themessenger 2 months ago
Well sheepie muh homie, if we gubument pay $60 a month for 100k civil servants per year dat would be $72 million per year out da public purse. Meantime da rest of us in da private sector who gatta pay we own contributions standing to the window like beggars at a banquet. That’s what I would call fair and equitable wouldn’t you??
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