Basseterre, Saint Kitts (SKNIS): Public servants and Government Auxiliary Employees (GAEs) continue to be updated on recent history-making reforms to the government’s pension system. This recent update to the Pension Act and the GAE Act builds on the momentum and commitment of the government to bring pension justice through inclusion and to provide security and restore dignity to all government employees. To date, seven sessions have been held with GAEs and Civil Servants employed before May 18, 2012.
The recent pension legislation changes were explained to attendees in detail, alongside information about how these changes affect retirement options. They were informed that the changes would have positive effects for both GAEs and civil servants.
GAEs have long objected to the lack of a pension and the attempt of the previous administration to create a dual pension system that would result in fewer benefits than their counterpart, civil servants. It was indeed good news for them to hear that the new update has removed the dual and unequal system and replaced it with an equitable system that uses the same formulas for the calculation of their gratuity and pension as those of the civil servant. Applause came as the understanding of safety and security at retirement sank in.
Choice has been the buzzword amongst civil servants hired before May 18th 2012. The pension reform presents a choice of remaining on the former pension plan with the retirement age of 55, OR the opportunity to join the new 3 per cent contributory plan. This plan has removed the administrative and lengthy process of asking each year for a one-year extension of service, which was a privilege and not a right.
Under the new plan, officers who choose to opt in will be automatically enrolled to work up to the new retirement age of 62. The deadline to opt into the new plan is June 30, 2025. Opt-in forms were distributed and have also been made available at each ministry and at the Human Resource Management Department.
Head of the Civil Service, Thelma Richard, emphasised that the pension reform reflects the government’s commitment to establishing a public service system that is equitable to all categories of workers.
“GAEs, once they meet the criteria, will no longer retire without a gratuity or pension. Civil servants will no longer need to ask for additional time to work to minimise the seven-year gap between government pensions and social security payments,” said Ms. Richard.
The revised pension plan has made eligibility for government pensions possible for around 2,000 people who previously were ineligible. This includes Government Auxiliary Employees, who work as crossing guards, park and beach workers, hospital maids, cleaners, drain cleaners, messengers, school bus drivers, and school meals staff.
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