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Allow competition for public sector pension plans says Phillips

Published: Wednesday November 21, 2012 | 9:20 am with audio | Comments 0
Member of Parliament for North West Manchester, Mikael Phillips - file photo.
Member of Parliament for North West Manchester, Mikael Phillips - file photo.

Debbie-Ann Wright, News Editor
The Gleaner/Power 106 News Centre

Member of Parliament for North West Manchester, Mikael Phillips, is suggesting that multiple companies should be given the opportunity to manage public sector pensions when the system is reformed.

Making his contribution to the debate on the recommendations for public sector pension reform in parliament yesterday, Phillips said the competition could lead pension fund managers to offer better returns on the funds entrusted to them.

He said it could also help to reduce risk.

When the recommendations were tabled earlier this month, Minister with responsibility for the public service Horace Dalley, said the committee has recommended that the money be held in a segregated fund, under trust.

He said beginning in January 2013, all new recruits in the public sector would be required to make a compulsory contribution of 5 per cent of their salaries to the fund.

In the meantime, Phillips also suggested that provision be made for common-law spouses to benefit under the new pension system, in the case of death of the beneficiary.

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Member of Parliament for North West Manchester, Mikael Phillips.
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