The Tribune

By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

LABOUR and Public Service Minister Pia Glover-Rolle defended the government’s proposed pension overhaul yesterday, warning that concerns about the fund’s long-term sustainability can no longer be ignored despite union resistance to key parts of the plan.

Her comments came after Bahamas Public Services Union President Kimsley Ferguson criticised aspects of the proposal, particularly a provision that would require public servants with fewer than eight years of service to join a new pension plan.

Mr Ferguson has argued that workers who entered the public service under one set of retirement expectations should not have those terms changed years later.

Speaking on Guardian Radio’s Morning Blend, Mrs Glover-Rolle said the government’s white paper process was designed to invite feedback, recommendations and negotiations from stakeholders, not impose final terms without discussion.

“We didn't say this is hard and fast, but we said this is what is proposed,” she said. “Come and tell us what you recommend, or what you want to see or what you maybe want to negotiate for your bargaining unit. That's what this process is about. We look forward to the feedback.”

The White Paper, tabled with the 2026-2027 Budget, proposes replacing the existing taxpayer-funded pension system with a Contributory Public Sector Pension Plan. Under the proposal, employees would contribute at least three percent of their pensionable salary, while the government would contribute five percent.

Public officers who have not yet vested in the current pension system would automatically become members of the new fund. Future hires and employees who voluntarily opt in would also be covered by the new plan.

“The point is, we have to make this happen,” Mrs-Glover Rolle added. “We can't keep pushing, kicking the can down the road and saying there's sustainability issues and we don't address them.”

Mrs Glover-Rolle also backed raising the retirement age, saying she intends to advance the issue during her tenure as minister.

She said many retirees return to the workforce for various reasons, a pattern she linked to broader questions about the sustainability of the pension system.

“So, why not extend retirement age by a year, two, three or four or however and see how that will help. We’ve done some numbers and it’ll help by the millions obviously,” she said. “So, it's something that I'm committed to advancing.”

The official retirement age in The Bahamas is 65, while early retirement can begin at 60.

Mrs Glover-Rolle said other labour reforms are also being developed, including measures dealing with mental health, work-life balance, flexible working arrangements and hours of work.

She said the proposed legislative changes would create a framework for managing modern workplace arrangements and help reduce disputes between employers and employees.

On the issue of a liveable wage, Mrs Glover-Rolle said the matter is not for the government alone, but also involves the National Tripartite Council.

She said any move toward implementation must be guided by consultation and analysis.

“You can't continue to ask an organisation and employer for more realistically if you're not also giving more, so it's a conversation of balance, you give a little, we give a little,” he said. “So, until the National Tripartite presents to the government an analysis, a recommendation on where we should go with the liveable age, we cannot move on.”