PeartTHE HOUSE of Representatives yesterday approved a new pension scheme for teachers which will see them receiving pension calculated at their highest salary at the time of retirement.
This has become possible under the Pensions (Teachers) (Amendment) Bill which was piloted by Michael Peart, Minister of State in the Ministry of Finance through the House yesterday.
Among civil servants, only teachers had a pension calculated at 1/600th of pensionable emoluments for each month of service. All others are calculated at 1/540th. Mr. Peart noted that the move was aimed at bringing parity to the system.
"We are bringing the teachers in line with others in the public service and their pension will be calculated at their highest salary," the Minister emphasised.
"We support any action which brings parity to the teachers," Opposition Member Clifton Stone said.
He urged the Government to ensure that the best management be put in place for all pension funds. He also urged a constant review of pension funds and actuarial studies, especially in light of the "changing nature of our economy".
Mr. Peart told the House that steps were currently being taken to effect legislation on pension reforms, which will have strict guidelines on pension fund management.
There will be strict guidelines on how they are invested, annual statements will be required, and participation at the trustee level by employees will also be mandatory. There will be an actuarial review every three years.
The Pensions (Teachers) Act is being amended with effect from June 10, 1996 to: Increase the rate of pension from 1/600th to 1/540th of pensionable emoluments for each complete month of pensionable service; remove the upper limit to the amount of pension a teacher may receive; and to allow the calculation of a teacher's pension on the highest pensionable emoluments ever enjoyed during his/her service.
Mr. Peart pointed out that the existing provisions have been in place for the past 43 years.
