Public Sector Pensions Law to be Implemented in 2017/18

The Pensions (Public Service) Act is expected to be implemented by the first quarter of the 2017/18 fiscal year.

State Minister for Finance and the Public Service, Hon. Rudyard Spencer, says the Bill, which was piloted in the House of Representatives in November 2015, will be re-tabled for debate to commence shortly.

He made the announcement during his 2016/17 Sectoral Debate presentation in the House on June 29, under the theme ‘Towards a New and Dynamic Public Sector’.

The Bill seeks to establish a scheme that mandates civil servants to contribute five per cent of their basic salary towards their pension; establish a segregated fund for contributions at a time to be determined by the Minister of Finance and the Public Service; gradually increase the retirement age to 65 years; and harmonise the legislation governing public-sector pensions into a single statute and repealing several previous enactments.

The Act is a key component of public-sector pension reform, which Mr. Spencer said remains pivotal to the Government’s attainment of a sustainable economic reform programme for Jamaica.

The pension reform programme aims to create an affordable, equitable, robust and sustainable system with adequate benefits; improve the administration of pension benefits through the automation of the business process; and establish a harmonised legislative framework.