JIS News

Member of Parliament for North West Manchester, Mikael Phillips, is suggesting that the Government utilise more than one pension fund manager to administer public sector pensions when the new pension scheme is implemented.

In making his contribution to the debate on the report of the Joint Select Committee on Pension Reform in the House of Representatives on November 20, Mr. Phillips argued that this will lead to increased competition and boost returns on funds.

“This will mean that no one pension manager will have all the pension funds under his control and would increase competition for companies to deliver the returns on the fund entrusted to them. It will also help to increase transparency,” Mr. Phillips said.

He said the move will also ensure that the future income of public sector bodies will not be put at risk by the concentration of funds in a single fund manager.

Mr. Phillips also stated that strong regulations should be implemented to protect public sector pension funds.

The Joint Select Committee has recommended that the Government retain the defined benefit model and that a segregated fund be established under trust.

It also suggested that new public sector employees should begin paying a contribution of five per cent of their earnings towards their pension as of January 1, 2013, and that existing workers should begin contributing to their pension in the new fiscal year of 2013/14.

Under the new pension scheme an actuarial review would be conducted every three years or earlier, if there are any significant changes in the economic environment of the country.

The retirement age for all workers will also be raised from 60 to 65 years, except for members of the security forces.

The debate was suspended to facilitate contributions from other members of the House of Representatives.