Public Sector Pension would not be viable without gov't contribution – JCTU president
President of the Jamaica Confederation Trade Unions (JCTU) Helene Davis Whyte says the proposed public sector pension scheme will not be viable without government's contribution.
Opposition spokesman on finance, Dr Peter Phillips, raised concern in Parliament yesterday that the Government has not indicated if or when it will start contributing to the proposed contributory pension scheme for public sector workers.
According to the opposition spokesman, there should also be an actuarial review of pension funds to ascertain the level of contribution needed from the Government to establish the Public Service Pension Fund.
Davis Whyte told The Gleaner/Power 106 News Centre last night, said it would not make sense to establish the new scheme if the government does not contribute to it.
The JCTU president adds that it is important for the government to start making it's contribution at the start of the new scheme.
Davis Whyte says the umbrella union should know when the government intends to start making its contribution to the proposed pension fund when it meets with the minister responsible for the public sector this Thursday.
Among other things, it is being proposed that public sector workers contribute five per cent of their salaries to their pensions starting next month.
Currently, civil servants do not contribute to their pensions.
Phillips argued yesterday that without specific timelines civil servants have no guarantee that the Government will contribute to the Fund.
He contended this pension payment would then seem like an additional tax on the salaries of public sector workers.