Implementation of public sector pension reform uncertain

10:43 am, Fri April 1, 2016

There is uncertainty surrounding the implementation of public sector pension reform, despite April 1 being the day it should have taken effect.

The Jamaica Civil Service Association (JCSA) has outlined that there are still aspects of the reform process which need to be resolved.

Under the current system, the Government pays the pension of public sector workers.

With the new arrangement, employees will contribute to their pension.

Legislation should have been passed for it to take effect in April, but this was derailed by the general election.

JCSA President Oneil Grant, said discussions have already started with Rudyard Spencer, the State Minister with responsibility for the Public Service.

He said based on the next steps to be taken, it is unclear when the pension reform will be implemented.

Meanwhile, the Jamaica Teachers' Association (JTA) said it is not ready for the implementation of the public sector pension reform and expects more discussion on the matter.

Byron Farquharson, JTA General Secretary, told RJR News that for teachers, there are two critical issues which need to be resolved.

He said the teachers have a "fair idea of what the bill is suggesting" and the JTA does not "have any objection to members contributing their pension - with the link being the extention of the retirement age."

However, he said he is concerned about how members are required to pay and over what time.

Mr. Farquharson maintains that the five per cent yearly contribution will erode salaries.

He proposed that instead of the five per cent coming from teachers' salaries at once, the government should roll out the pension plan over a five year period by adding one per cent per year.

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