The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BAMBOO Town MP Renward Wells yesterday reiterated calls for the Government to enact legislation regulating the pensions industry, arguing that retirement savings plans must be contributory with employees able to transfer them between jobs.

“About two years ago the Pension Bill was brought to Parliament. It went to a second reading and we started having a debate. I fundamentally disagreed with that Bill,” said Mr Wells yesterday.

“I believe that pensions should be contributory of both the employee and the employer part, and in addition to that the pension should follow the employee wherever he or she goes, like the 401K in the United States. A large part of our debt counted as direct debt is the pension liability on the Government.”

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.

Mr Wells said the Government could look at the Singapore state-run model as it seeks to bring about pension reform.

“I believe we can look at Singapore. Singapore has one deduction they take from their employees and it goes to a fund where they use that money to give its citizens three things; that’s their NIB contribution, so they have their social security; that’s part of their pension fund; and they use it for national health insurance,” he added.

In 2013, the Christie administration presented a Bill to bring about pension reform. Michael Halkitis, minister of state for finance, said then that 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 Bill will also create a publicly funded Pension Commission to regulate the sector.