Premier Dr Natalio Wheatley has indicated that his government will soon take steps to change the current pension and gratuities scheme for civil servants.
Speaking on the Talking Points radio show earlier this week, the Premier said the current non-contributory scheme is “running the government broke” and must be revised as the government attempts to save money that could be used to fix failing public infrastructure.
“We have a huge unfunded liability — we pay persons’ pensions and they don’t pay anything and that in itself is unsustainable and is running the government broke,” the Premier explained. “So, eventually, we’re going to have to do a contributory pension scheme.”
He said he will be bringing the issue of the government pension scheme to the fore soon even though people may find the move scary.
The government has been talking about revising its pension scheme for some years now but no formal action has been taken to change the system.
Under the previous administration, former Premier Andrew Fahie had stated that pension reform was a high priority for his government but had to take a back seat when the COVID-19 pandemic hit.
According to information from the Ministry of Finance, the government spent almost $80 million for pensions and gratuities to its employees from 2013 to 2018.
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