Time for a decision on pension scheme
Premier Dr Natalio Wheatley has stressed that it is time for a review by the government on the issue of a contributory pension scheme for public servants.
The Premier was at the time addressing concerns from Sixth District Representative Myron Walwyn regarding the exclusion of pensioners from the recent public officer salary increase.
Walwyn stressed the impact of cost-of-living adjustments on the vulnerable group and urged the Premier to consider immediate relief for pensioners, emphasising their contribution to society and their foundational role.
Premier Wheatley expressed a strong commitment to addressing the needs of government pensioners who were not included in the recent salary review that earmarked approximately $10 million for public officer salary increases.
The Premier also acknowledged the rising cost of living, which was the basis for the public officer salary increase. However, he emphasised the critical situation of the current non-contributory pension scheme. The current scheme faces an unfunded liability, meaning there’s not enough money to pay out future pensions.
The proposed solution is a contributory pension scheme where both employers and employees contribute funds. This approach aims to create a more sustainable system for future retirees.
“The decision as it pertains to the introduction of a contributory pension scheme would be one for the governor, and of course, because we have to fund it, ultimately Cabinet must agree to that and then the House of Assembly must make the resources available to make it a reality,” Dr Wheatley said.
The Premier, who is also the Finance Minister, noted an annual addition of $1.7 million to the pension bill, with $7.3 million paid out in pensions at the end of 2023. He explained that “arbitrary increases” without proper analysis could further jeopardise the scheme’s sustainability. He also pointed out the importance of actuarial studies to ensure long-term viability.
Meanwhile, Dr Wheatley suggested this reform would also benefit lower-paid public officers who might not have been able to afford contributions previously, but with increased salaries, could now participate.
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Surely the current diaspora of public servants realise that the Government has not made any provision for the payment of their extraordinarily generous pensions, and that pensions are paid out of current Government income.
Whilst Government income was flush from Financial Services, there was cash to pay the pensions even after the waste on Government first class travel, 5 star hotels, new cars for everybody, ludicrous rents for buildings owed by friends etc.
However as income form Financial Services decreases and more and more Government employees reach pension age, there is little prospect that the Government will be able to continue to pay the current pensions for many more years, and virtually no prospect that a current Government worker will be paid a full pension for the whole of their retirement.
If an employer in the private sector offered unfunded pensions to employees, it would likely be a criminal offence.
Let’s wake up and smell the coffee.
Give me a choice, the money I pay for nhi I would rather put to pension.
The money that you pay to the SSB is invested – mostly in a sensible and wise manner although there are some loans to the Govt that may not be repaid, and there is the Joe’s Hill debacle. However, SSB is fairly flush with funds.
The money paid to NHI is used to pay for current medial treatment for persons covered by the scheme – although the income is less than the expenses and the Government has to top up NHI.
Govt workers do not make any monthly payments towards a pension, and nor does the Government make any payments on their behalf.
In due course it is likely that the Government will require public servants to pay pension contributions, and will make deductions from salaries – but those contributions will not be invested for the future but will be used to pay current pensions.
In other words any payments deducted from public servants will not be invested for those public servants pensions, but will be used to pay current pensioners.
The whole Government pension process is a form of legalised ponzi scheme – where funds paid in are not used to make investments for the future but used to pay current liabilities.
If there is a proper fund manager, then the funds deducted from employees salaries will be invested for those employees when they retire. Government will have to determine a way to pay the current pensioners or continue has they are doing now until the current pension scheme phases out. They cannot use other people’s contributions to pay the existing pensioners. Stop spread propaganda.
Couldn’t have said it any better.
And have no insurance? Remember, medical care is very expensive and it is impossible for us to pay for it.
Hence the benefit of being able to choose, you choose what is best for you and I will me. If I prioritize pension and can find a more beneficial and cheaper insurance then why not?
THOSE POLITICIANS ALREADY FIXED UP THEMSELVES
HOA have already sorted themselves out with the GREEDY BIG BILL so why worry about anyone else.
This premier just straight out l**s.
Pre election he said one of the first things he would do if re elected is to REPEAL the greedy bill has this been done???
In case he doesn’t comprehend repeal does not mean amend.
Do what you said you would do if we re elected you.
You first need to understand how these things work before speaking about them. There is no magic bullet, it all must be done in a sensible way for it to work. SMFH!!!!!!
Get rid of the greedy bill (as promised) and you will have some money to work with.
However, the government employees should be paying into a pension plan like the rest of us.
What are the rules regarding qualifying for a pension in government. Do you have to work until 65 as with Social Security or is there a lower age requirement. Why would they need a special pension plan. Why can’t they just pay social security like everyone else. We have a system that works for everyone and should be able to replace the greedy bill unless government workers are special and politicians far better than the common citizen.
No one should not besurrering in their susnset years because cannot afford the exorbitant and gouging cause of rising living.
It is clear, however, that some comments are read, as the article reflects precisely those of a comment posted perhaps around a week ago..
It reflects the concern of a certain law maker for the well-being of the former public servants senior citizens..
The suffering of that vulnerable group can be reduced by 1) increasing the pension benefits and 2) increasing the Social Security monthly amounts which are woefully inadequate for current standard of living and 3) pay immediately the increments due to retired senior civil servants.
It is hoped that some movement in that direction will be a top priority and that the decision to punsih the citizens for four more years will be reversed along with the “Greedy Bill.”
Pay all increments and reverse the “Greedy Bill” now!
you Mr. Walwyn. Your heart and empathy are in the right places. Keep doing your job for the people. You will be blessed and rewarded in turn.
We need leaders not in love with money, but in love with justice. Not in love with publicity and photo opps and travel, but in love with the humanity of his country.
We needdiffernet leaders today not in love with money.
There is no decision. That liability will only grow over time to where it cannot be budgeted. Government has no choice but to start a contributory funded pension plan ASAP. To do otherwise is negligent, incompetent and a financial time bomb.
Myron Walwyn heart is in the right place . If he did not come down on the premier would he have thinking about pensioners? Not him.
He has no empathy
Look at the cost of living ! How can pensioners exist on a salary they were getting some 15 , 20 years ago ?
Andrew plug out SS money millions he did not go through a process
This is the height of injustice
What about them charter companies who making big profit and not doing anything for the employees. The government needs to let those companies adhere to the BVI laws and regulations.
Time to change Government websites to Criminal Andrew Fahie and remove the word honourable. An time for BVINews to catch up with the news.
Let the dead bury the dead yeaa