Wed | Dec 19, 2018

Government pension contributions to be phased in over five years

Published:Friday | March 9, 2018 | 10:01 AM
Shaw: public sector workers will pay one per cent of their salaries as pension contributions over five years.

The government has adjusted its position on the payment of pension contributions by public sector workers.

Workers were being required to contribute 2.5 per cent of their salaries in year one and another 2.5 per cent in year two.

But Finance Minister Audley Shaw says the Government will now be phasing in the pension contributions over five years.

As a result, public sector workers will pay one per cent of their salaries as pension contributions over five years.

 

Finance Minister Audley Shaw

The Pensions (Public Service) Act, 2017, which is intended to reform pension arrangements in the public sector, was passed last year by both houses of parliament.

The legislation establishes a contributory pension scheme that will make it mandatory for all pensionable officers to contribute five per cent of their basic salary towards their pension.

It also provides for a gradual increase in retirement age from 60 to 65.

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