Unsustainable! Pension scheme fix may take two years
Premier Andrew Fahie has announced that his government is working on a comprehensive pension plan to reform the pension system for the territory’s public servants.
While describing the current system as unsustainable, Premier Fahie stated at a recent press briefing that an initial meeting was held on February 14 to discuss a way forward with that initiative.
According to the Premier, the goal is to make it a contributory pension scheme, thereby removing the contingent liability from the government and allowing for a system that will have greater flexibility for public officers on their retirement options.
“Government cannot continue to fund the pension fund outright like that. It will be unsustainable … So, we will all be contributing to the scheme. You will be hearing more about this initiative soon,” the Premier said.
The Premier further indicated that both the National Health Insurance (NHI) scheme as well as the public service pension scheme were likely to come under the microscope for reform.
The territory’s leader further explained that the issue was not a quick fix and will take some time to be rectified.
“That may take within a year and a half to two to complete but the process has to be started now,” he expressed.
Fahie noted that current projections place the territory in a deficit by 2029 in the absence of a reformed pension scheme for the public service.
“If nothing is done that will become a deficit for the government. So, the government has to make some decisions whether now or later but you can’t afford to kick this can down the road any further. You have to do it in the best interest of the people,” he added.
Priority issue that COVID forced to take a backseat
While admitting that the issue is a high priority for his government, Premier Fahie further noted that it had taken a back seat for some time.
“The pension scheme was one of the areas that we had as high priority when we came in [office]. Like everything else, it took a little backseat with COVID because you were just living and breathing on how to deal with COVID. We didn’t know what it was about, we were concerned,” he said.
He continued: “The initial projections from our health team showed that you could go as much as 3,500 deaths if we didn’t put measures in place, so it shifted our attention from for about 25 to 26 months off of a lot of what we wanted to do. It’s not an excuse. It was just a fact. The whole world had to do that.”
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this have to happen sooner rather than later. I don’t think any Caribbean Islands can continue for much longer to fully fund a pension scheme.you are correct premier this fully funded pension scheme cannot continue the way it is.this should have been dealt with yes ago.its a heavy burden than cannot be carried much longer .several Caribbean Islands are presently looking into this same matter.
So wonderful to see the Belongers at BVINews censoring and deciding which comments to publish. Free speech is gone in the BVI along with laws. Only thing that remains is lawlessness, drug running and very corrupt politicians. And the Foy is worried about image. Lmfao.
I still remember how the government screwed many expats out of getting their pension……some was forced out of their job just before they become elegible for pension. One day the wickedness will stop.
COI lances the boil premiers off island announcement and the truth begins to ooze out
willstop all the spongers claiming a pension after 25yrs while opening a competing business with the government.
Put all Government employees on Social Security. The additional payees will allow the system to increase payout amounts so everyone wins!!
How about increasing monies paid to the old folks? The amount they receive from Social Security is ridiculous!
And a lot of old folks get “0” from SS. Then reduced to begging for stipend which never comes. Two and half years his letter has been turned into the Premier’s Office… Just a run continuous around. School children and old folks are treated terribly in the BVI.
Check teachers and doctors leaving government in a heartbeat!! Thats the only thing they could of look forward too after so much work and little compensation… Rediculous you cant do that to who already in the system… you need to deal with this better.. with the new ones.. stop paying housing and increments to contract workers and big salaries to certain people including the legislators.
Should have happened years ago. How could anyone with any vision begin to think that was sustainable and have implemented such a ludicrous program. People being paid retirements when in their 40’s and still getting government contracts for their own business.
YOU WILL PLAYING WITH ?
I just sick to mi stomach with this pie in the sky math teacher. How long did it tech fi he to create a medical insurance and three (3) yrs pay fi hem and him one term party?? STFU!
Ayo watch. I bet the Hon. Premier done read the COI and managing ayo expectations and figuring out how he going to come out looking good. Ayo will see and hear all kinda thing between now and when the report is public and then ayo will see. Penson reform for Govt employees = No. 1. Waiting to see what coming next. Just watch.
Son of a gun done fix up the politicians own long time
HE IS GOING AFTER THING BIN SIGHT , AND WHAT A PACK OF HYPOCRITES HE HAS AROUND HIM , NONE OF THEM SEEMS TO CARE WHAT HE DOES , THEY JUST SAY ( YES ) AND HO BACK TO SLEEP ?
Its easy. Fixed pension payable to over 65’s. None of this paid a pension when you leave. It’s the reason no one in the BVI wants to go into the private world and all want Govt jobs. The Civil Service salary costs are a massive drain on the BVI and the service is not worth the money paid.
Shame that is all your voters but a Govt has to do it.