Prime Minister Andrew Holness speaking at the annual Sagicor Pension Investment Seminar yesterday. (Photo: Lionel Rookwood)
PRIME Minister Andrew Holness says policy changes will be made to existing pension schemes even as trade unions insist that they will not accept some of the proposals by his Administration to implement a contributory scheme by April of this year.
Speaking at the annual Sagicor Pension Investment Seminar yesterday, Holness said the changes will ensure greater efficiency of pension funds.
The policy changes are expected to form part of a structural benchmark under the four-year International Monetary Fund Extended Fund Facility.
The changes propose, among other things, that government workers contribute five per cent of their salary towards their pension; that benefits be computed using an average of the final five years of the beneficiary’s salary, instead of the final pay as now obtains. Additionally, retirees would be given the option of receiving one-quarter of their entitlements with reduced or full pension benefits
