Pension payments more than double in 10 years—AG Report
According to the report, now a pubic document, the Government supports a fully funded pension system for qualifying former public servants and legislators.
Auditor General, Ms Sonia M. Webster, has noted however, that over a 10 year period, "the annual pension and gratuities payments have more than doubled, from $6.7 million in 2003 to $14.3 million in 2013.”
This, Ms Webster, believes is alarming.
She noted also that currently, the government’s pension obligations, far exceed the balance held in its Pension Fund of $1.01 Million.
Additionally, “there is a need for an actuarial assessment to be carried out and for the introduction of adequate provisions to support this liability.”
Eyes on Statutory Bodies
Meanwhile, the Auditor General in documenting additional concerns, also noted in the 2013 Report that “the Government does not require (its) statutory authorities to produce financials prior to providing financing, consequently there is no incentive for these agencies to adopt prudent financial practices and this no accountability.”
The report cited the Prospect Reef Management Company, which operates without a functioning board and is unable to present any audited financial statements and are equally unaccountable and require oversight.
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10 Responses to “Pension payments more than double in 10 years—AG Report ”
The first order of business is to conduct an actuarial study as suggested by the AG. Additional actions can include a retiree sinking fund for some current employees and new employees. Employees could be required to contribute a percentage of their income, ie 5, 6, or 7%; government could match employee contribution dollar for dollar, fifty cents to the dollar, two dollars to the dollar........etc. Sinking fund can be managed by a third party approved by HOA.