The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

STATE Public Service Minister Pia Glover-Rolle said yesterday that a contributory pension plan will be presented soon to public sector unions for feedback.

Mrs Glover-Rolle spoke during her Budget debate contribution at the House of Assembly, saying: “The government, led by the Ministry of Finance, is exploring ways that a contributory pension plan can be feasibly introduced. The draft legislation will soon be presented to public sector unions for feedback.”

The minister explained the “ideal” format of the pension plan, noting the more public servants contribute the more benefits they will receive.

“The way this will work is that the benefits will be larger, on average, than those experienced under the existing plan, and will also be proportionate to the amount of public servants’ contributions. The more you contribute, the more you will receive.”

Mrs Glover-Rolle said existing public servants will still be entitled to their current pension plan along with NIB.

She added: “They will be able to opt into this contributory pension plan so that when they retire they will receive NIB benefits, the existing pension plan benefits, as well as the expanded benefits from the contributory pension plan.”

In terms of new public servants, they will be streamlined into the contributory pension plan. Mrs Glover-Rolle said this will provide better benefits for the beneficiary in a “financially sustainable” way as well as the government.

“The plan is also intended to be portable,” she said. “This means that if you start your career in the government but then decide to explore private sector opportunities, you can take the plan with you. And even begin to contribute more so that you can receive more benefits upon retirement. This is a modern pension plan for a modern Bahamas.”

The government was previously said to have hired KPMG to analyse how the government should best structure a contributory pension scheme for new civil service hires.

In November 2021, Mrs Glover-Rolle told the Office of the Prime Minister’s weekly media briefing that the accounting firm would develop recommended contribution rates and other conditions for a scheme that will see new civil servants - for the first time in Bahamian history - contribute towards their pensions and retirement upkeep.