The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

ENACTING legislation to protect Bahamian pensions ought to be a matter of “national priority”, a former Attorney General said yesterday, comparing its importance to that of National Health Insurance (NHI).

Alfred Sears QC told Tribune Business that enacting pension legislation was key given the importance of such schemes to the “social security architecture”.

“I think that it ought to be a matter of national priority because in our country the majority of Bahamians are employees rather than entrepreneurs, even though I would like to see more Bahamians become entrepreneurs,” Mr Sears said.

“Since the majority of our people are employees, the pension, where it is provided for, is an important part of the social security architecture of the country and our people. We need to ensure that there is a uniform practice in the management of pension funds and in the securing of pension funds so that one of the most important assets is protected.”

Mr Sears added: “Just as National Health Insurance, pension safeguards and protection are equally important. It’s a critical part of the social architecture of the country and we need to give it more emphasis. I certainly implore and invite the Government to give it more priority.”

Many pension fund administrators have in the past decried the continued absence of mandatory pension legislation in the Bahamas, and the dismal 25 per cent pension-to-workforce coverage ratio. Too many Bahamians still tend to rely on the National Insurance Board (NIB) for their retirement income.

The Government has previously proposed  pension legislation, and in 2013, the Christie administration presented a Bill to do just that.

At that time, minister of state for finance, Michael Halkitis, said the Bill prohibits the operation of a pension plan or fund without registration, and sets out the general responsibilities of its manager.

The Bill also imposes a duty upon the employer to give information to an administrator. The legislation would ensure that upon retirement, there would be funds in a worker’s retirement account to enable them to sustain their standard of living and quality of life.

The Bill will also create a publicly funded Pension Commission to regulate the sector.