Davis Whyte explains public sector workers contribution under proposed pension system
Vice-president of the Jamaica Confederation of Trade Unions (JCTU) Helene Davis Whyte says most public sector workers will not be forced to fork out an additional five per cent of their pay to contribute to their pensions when the government’s new pensions scheme comes on stream.
The Government is pushing to institute legislation for the new public-sector pension system by April and it could see the workers, who recently got a seven per cent increase in salaries, paying over five per cent in contributions.
The Jamaica Teacher’s Association has raised concern that the requirement could be unbearable for public sector workers.
Opposition Spokesman on Finance, Audley Shaw says the implementation of the pension scheme should have been accompanied by a higher salary increase that would allow a cushion for the workers to begin to make contributions to the scheme.
However, according to Davis Whyte, the vast majority of public sector workers will only have to find an additional one per cent of their income to cover the pension requirement.
The JCTU Vice-president says there are some workers in the public sector, particularly in local government who were not making payments towards the family benefit who will have to find the funds to make the full five per cent payment.
She says typically when negotiating for wage increases, unions try to agree on a rate which at the very least cancels out the negative impact that any new required payments will make.