By Balford Henry,
Senior Reporter
THE GOVERNMENT has modified a proposal to block cash refunds of pension benefits but the variation might not be enough to console workers.
Minister of State in the Ministry of Finance and Planning, Michael Peart, told Parliament yesterday the Pensions Reform Committee, the actuaries and officials at the Ministry of Finance and Planning, had agreed "the mandatory vesting of pension rights should be supported".
His statement coincided with the tabling of a White Paper, "The Reform of the Pension System in Jamaica".
Mr. Peart said public concerns about vesting the funds (restricting its availability for refunds before pensionable age) had been taken into consideration and accommodated as far as voluntary contributions were concerned.
To this end, the proposal was modified to state that: "the repayment of the members' voluntary contributions, along with the interest/appreciation, will be allowed on termination of employment in circumstances wherein they are not entitled to pension".
The modification means workers who resign their jobs and move on, prior to reaching pension age, will have access to the portion of their contributions made outside of their mandatory pension contributions. These are voluntary contributions, often used to improve their pension benefit. They will still not have access to the mandatory contributions.
The original proposal had caused concern among workers who were against losing their entitlement to collect full pension contributions on leaving their jobs. Last year it led to a protests by Caribbean Cement Company workers represented by the National Workers Union.
One senior union source contacted for a comment on the announcement last night, said he did not wish to make a statement until he has seen a copy of the White Paper. But, he admitted if what has been stated is correct, it would not satisfy the workers and the trade unions.
Mr. Peart said that the proposed legislation, which will be informed by the White Paper and will be tabled soon, will only apply to contributions made after the enactment of the law.
