The Tribune

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

PRIME Minister Philip “Brave” Davis yesterday said public service pensions will increase effective December 1.

He also announced a $500 lump sum payment to recipients of the COVID-19 unemployment assistance programme and said increments for public officers, which were withheld under the previous Minnis administration, will be reinstated.

The increase for public service pensioners was borne out of consideration for public service retirees, who Mr Davis said have not received a cost-of-living adjustment.

As a result, many of them have suffered a great deal, especially during the economic downturn, the prime minister said.

The increase will take effect on December 1 and comes at a cost of $6.4m.

Mr Davis said: “For the 742 persons receiving less than $500 per month in a monthly pension, they will receive an increase of $100. For the 2,012 persons receiving more than $500 but less than $1,000 in monthly pension, they will receive a monthly increase of $75, and for the 4,432 persons receiving a monthly pension of greater than $1,000, they will receive a monthly adjustment of $50.”

Increasing pensions was a Progressive Liberal Party campaign promise, however yesterday’s address only spoke of an increase for those who worked in the public service.

Earlier in his address to Parliament, the Cat Island, Rum Cay and San Salvador MP said the increase was to support those in need.

“The government must also be considerate of another vulnerable group of persons, namely the pensioners in our society. Let me remind this honourable House that it is the public service pensioners who long kept our country running.

“This group includes retired teachers, nurses, doctors, police officers, corrections officers, and retired clerical and administrative staff.

“These pensioners receive no cost-of-living adjustments and many of them have a combined income of less than $500 per month. It is, therefore, not surprising that these individuals have suffered greatly during the economic downturn.”

He continued: “On behalf of a grateful nation, I would like to say a heartfelt thank you for your service. Our gratitude will be reflected by an increase in public service pensions; a sliding scale will be used to make sure the increase correlates with the need.

“I want to be clear: the intent of the public service pension increase is to support those in need. This list does not include pensions for former politicians or senators, nor does it include pensions for former judges or holders of the Office of Governor General or their surviving spouse.”

He said the annual cost adjustment was less than the amount owed in business license fees by one developer in New Providence who received assistance from the former administration to avoid paying what was legally owed to the government. He did not mention the identity of the developer.

Mr Davis said while the former Free National Movement government chose to help one wealthy developer, his administration was deciding to help thousands of Bahamians who have served the country well. These are Bahamians who deserve economic dignity in their senior years, Mr Davis said.

Regarding those people currently receiving $100 per week from the COVID unemployment assistance programme, Mr Davis said they will get a $500 lump sum payment this Christmas.

“More than 17,000 Bahamians are currently receiving COVID-19 unemployment benefit assistance administered by the National Insurance Board,” he told Parliament. “Many of these individuals are a year and a half into trying to stretch $100 per week to pay their bills and feed and support their families.

“Last Christmas, as I spent time in communities in New Providence and the Family Islands, including in my own constituency of Cat Island, Rum Cay and San Salvador, I spoke with many Bahamians who had little means to celebrate and whose suffering was evident.

“This Christmas will not be the same. For every person currently receiving $100 per week from the COVID unemployment assistance programme, we will provide a $500 lump sum payment this Christmas. There is no way to alleviate entirely the suffering you have experienced over the past 18 months, but the hope is that this payment can mark the beginning of a new, more hopeful time for you.”

Increments are also making a comeback for public officers, Mr Davis revealed.

The effective date for the increment reinstatement is July 2021 and the payment date is January 2022.

“The increments, which are nominal adjustments in earnings for the majority of public officers of no more than $700 per year, were withheld by the previous government—even as lavish public contracts were awarded to family members of Cabinet ministers,” Mr Davis said. “This inequity is now being addressed. The effective date for the increment reinstatement is July 2021 and the payment date is January 2022.

“This reinstatement, which will cost $8m this year, is being funded from the increase in revenue over forecast experienced in the 1st quarter of this fiscal year. Arrears will be paid once additional savings have been identified.”