Cabinet Approves Pension Increases

Minister of Finance and the Public Service, Audley Shaw, informed the House of Representatives yesterday (Oct. 7), that Cabinet has approved increases in pension to Government pensioners, including widows/widowers and dependents, with effect from July 1, 2008.
This, he said, is in keeping with Cabinet’s decision on July 8, 1991 in which it was agreed that Government pensioners should be given annual increases to minimise the effect of increases in the cost of living.
Mr. Shaw also stated that for the 2008/09 fiscal year, an amount of $450 million has been provided for pension increases to apply to pensioners who were: in retirement for not less than 2 and a half years as at the 1st of July 2008; at least 55 years of age as at 1st of July 2008; retirement on the grounds of ill health regardless of age and widows/widowers and dependents in receipt of pension prior to July 1, 2008.
The increases have been applied as follows: $24,000 per annum ($2,080 per month) for pensioners receiving under $20,000 a month; $22,800 per annum ($1,900 per month) for pensioners receiving $20,000 to $29,999 a month; $20,400 per annum ($1,700 a month) for pensioners receiving $30,000 to $39,999 a month; $15,000 per annum ($1,250 per month) for pensioners receiving $40,000 to $49,999 a month; $9,000 per annum ($750 per month) for pensioners receiving $50,000 to $74,999 per month; $7,200 per annum ($600 a month) for pensioners receiving $75,000 and over a month; $14,000 per annum ($1,200 per month) for widows and widowers and $9,000 per annum ($750 per month) for dependents.
The minimum pensions for persons aged 55 years and over and for those pensioners who retired due to ill-health have been increased as follows: persons with service of between 10 and 20 years from $72,000 a year up to $96,000 a year and persons with service of 20 or more years from $120,000 a year up to $144,000 a year.
Mr. Shaw also announced that there would be a special adjustment for pensioners who retired prior to 1st January, 1995 and are receiving less than $50,000 per month.
He also added that 21,158 of the 24,290 pensioners paid by the Accountant General (approximately 86 per cent), will benefit from the increases.
“Pensioners paid by other agencies covered by the Government Pension Plan, will also benefit from the increase,” Mr. Shaw stated.
Payment of the increases granted is expected to be effected in November 2008, in respect of those pensioners for which the Accountant General has responsibility.