Pension crisis at NWC, utility company unable to pay $19.5B
Livern Barrett, Parliamentary Reporter
The National Water Commission (NWC) is reporting that it is unable to pay pension liabilities totalling $19.5 billion.
As a result, President of the NWC, Mark Barnett, who made the disclosure today, says the utility company is now undertaking "comprehensive" pension reforms.
And he warned that this will "impact" all employees.
Barnett, who is now appearing before the Public Administration and Appropriations Committee (PAAC) of Parliament, said employees who become eligible for pensions are "paid from the tariff collected from customers."
"But that is not sustainable," he acknowledged.
The NWC boss said as part of the pension reforms, all employees of the utility company will have to contribute to their pension.
He said this will require amendments to the NWC Act.
Among the efforts to address the multi-billion dollar pension liability, Barnett said the NWC is contemplating divestment some of its properties that are not integral to the operations of the company.