Public Sector Workers Assured of Lump Sum on Retirement

Minister without Portfolio in the Ministry of Finance and Planning, Hon. Horace Dalley, is assuring public sector workers, particularly security groups, that there is no need to take the option of early retirement, in order to secure pension lump sum entitlements.

“The reformed pension system, to come on stream in 2016, will preserve the lump sum entitlement. This government is aware and is extremely sensitive to the fact that retirees depend on this lump sum payment to start their new lives in retirement,” Mr. Dalley said.

The Minister, who has responsibility for the Public Service, was making his contribution to the 2013/14 Sectoral Debate in the House of Representatives, on July 2.

Mr. Dalley explained that with pension reform being one of the major prior actions required by the International Monetary Fund (IMF), to secure an agreement, the Government had started “earnestly on this mission, because we know that the present pension arrangement is unsustainable.”

He further explained that as part of moving the process along, the work of the Joint Select Committee of Parliament was concluded and a report tabled and debated in the House.

However, he noted, as the negotiations with the IMF progressed, and wage talks with public sector unions intensified, Cabinet decided that pension reform could not be implemented at this time, but that the pension reform process continues, with a new implementation target date of April 1, 2016.

Contact: Alphea Saunders