Wehby wants pension portability
Businessman and government senator, Don Wehby says the Government should consider making pensions portable and shorten vesting periods to help make the public sector more attractive to young people.
Wehby made the recommendations on Friday, during his contribution to the Senate debate on two pieces of pension reform legislation.
He noted that the current system does not provide for portability of pensions, which, he argues is a disincentive for persons who wish to move into the private sector.
According to the Group Chief Executive Officer of GraceKennedy Limited, portability of pensions is also very important in the context of rationalising the public sector.
Wehby has also recommended cutting the period of vesting, which is when workers become entitled to getting pension benefits form their employers equal to the amount they contributed.
He said the current vesting period in the public sector of 10 years could be reduced to five years.
The Constitution (Amendment) (Established Fund) (Payment of Pensions) Act, 2017 will establish a contributory pension scheme in the public sector as well as a segregated fund from which payments will be made.
The House of Representatives has already approved the legislation.