Saturday, May 4, 2024

What pension laws say

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THERE SEEMS to be a lot of misunderstanding relating to the pension laws for central Government and statutory boards.

The persons from Barbados Investment and Development Corporation were forcibly retired under Section 8 (1) of the Statutory Boards Pension Act Cap 384. This section states that a board may require an officer in its service to retire at any time after he attains the age of 60 years.

In central Government, there is a similar provision under Section 13B of the Pensions Act Cap. 25 where the Governor General may require an officer to retire from the service of the Crown in a civil capacity:

• at any time after he attains the age of 60 years, or

• in special cases at any time after he attains the age of 55 years.

In accordance with Section 13B (2) (b) of Cap. 25, the Governor General would be acting on the advice of the appropriate service commission.

The Pensions (Miscellaneous Provisions) Act 2004-25 mainly increased the compulsory age of retirement. Prior to this, the compulsory age of retirement for central Government under the Pensions (Miscellaneous Provisions) Act 1985 was 60 years for those who did not exercise the option to work until age 65, and also for certain categories of posts as set out in the then Schedule to Cap. 25.

The option offered at the time indicated that persons who were under the age of 50 at June 1, 1984, excluding the categories of posts set out in the Schedule, could exercise the option to work until age 65. If they did not exercise the option, the compulsory age of retirement was 60 years. On the other hand, for persons appointed after July 15, 1985, the compulsory age of retirement was 65 years and the voluntary 60 years.

What the Pensions (Miscellaneous Provisions) Act 2004-25 made arrangements for was:

• Persons who were appointed before July 15, 1985, would retain the provision to retire voluntarily at age 55.

• All persons, whether they exercised or did not exercise the option under the Pensions (Miscellaneous Provisions) Act 1985 and persons holding certain posts as set out in the Schedule, would now be allowed to work until the new compulsory age of retirement set out in the Pensions (Miscellaneous Provisions) Act 2004-25.

• Any person appointed to the Public Service after January 1, 2005, would fall under the new compulsory age of retirement in the Pensions (Miscellaneous Provisions) Act 2004-25. The voluntary age of retirement will be 60 years.

• The new compulsory age of retirement for staff of statutory boards would be as set out in the Pensions (Miscellaneous Provisions) Act of 2004-25. The voluntary age of retirement remains 60 years.

• The changes to the new compulsory age of retirement took effect from January 1, 2006. At present the compulsory age of retirement is 66 and a half years. From January 1, 2018 it will be 67 years.

The Pensions (Miscellaneous Provisions) Act 1985 was not applicable to statutory boards.

The new compulsory age of retirement was standardised with the new pensionable age set out in the National Insurance and Social Security (Amendment) Act, 2002.

– Michael S. Luke

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