Prime Minister Natalio Wheatley has indicated that the government will soon take steps to change the current pension and gratuity system for civil servants.
The Prime Minister told his Talking Point radio show earlier this week that the current non-contribution system was “bankrupting the government” and that it would be fixed as the government sought to save money that could be used to repair broken public infrastructure. Said it was necessary.
“We have huge unfunded debts. We are paying people pensions and they are not paying anything. That in itself is unsustainable and is bankrupting the government. “There is,” the Prime Minister explained. “Therefore, eventually we will need to introduce contributory pension schemes.”
He said that although the public may find the move scary, he intends to bring the issue of the government pension system to the forefront soon.
The government has been talking about reviewing the pension system for several years, but no formal steps have been taken to change the system.
Under the previous government, former Prime Minister Andrew Fahey said pension reform was the government’s top priority, but it had to be put on the back burner when the coronavirus pandemic hit.
The government spent about $80 million on employee pensions and tips from 2013 to 2018, according to Treasury information.
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