Minister Whiteman, who was speaking with journalists at the weekly post-Cabinet press briefing at Jamaica House, said the proposal had been made by Finance and Planning Minister, Dr. Omar Davies, and accepted by Cabinet, yesterday.

"These decisions are consistent with a policy pursued since 1991 of annual increases to pensioners to reduce the problems they face as a result of increases in the cost of living," Mr. Whiteman said. He explained that the increases for the different categories are graduated larger increases for those at the lower income scale.

Those set to benefit from the increases are widows, widowers and dependents; persons retired for health reasons, regardless of their age; persons 55 years and over on July 1, 2002; persons on pension for at least two-and-a-half years at July 1, 2001; and persons whose pension is less than $50,000 per month.

Mr. Whiteman noted that the increases form part of the pension reform process, which should be expedited in the upcoming legislative year.

In June, Michael Peart, then Minister of State for Finance, told the House of Representatives that the Finance and Planning Ministry was in the process of drafting legislation for pension reform which would deal with all pension schemes whether private or public.

Currently, there is no legislation to govern how pension funds are utilised or managed. The pending legislation will address, among others, who manages pension funds, how they are managed and where they are invested.