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Pension payments more than double in 10 years—AG Report

-says Gov’t obligations exceed balance in retirement fund Fund
Auditor Genera,l Ms Sonia M. Webster, has noted that over a 10 year period, the annual pension and gratuities payments to senior citizens in the VI have more than doubled. Photo: VINO/File
Auditor General, Ms Sonia M. Webster said, the government’s pension obligations far exceed the balance held in its Pension Fund. Photo: VINO/File
Auditor General, Ms Sonia M. Webster said, the government’s pension obligations far exceed the balance held in its Pension Fund. Photo: VINO/File
ROAD TOWN, Tortola, VI - The 2013 Auditor General Report laid on the table of the House of Assembly last month continues to highlight many issues.

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.

10 Responses to “Pension payments more than double in 10 years—AG Report ”

  • CHANGE NEEDED NOW! (23/08/2018, 13:32) Like (12) Dislike (5) Reply
    Contributory pensions, paid at retirement age 60/65. Its that simple.
    • Diaspora (23/08/2018, 20:25) Like (7) Dislike (2) Reply
      @Change Needed Now, it is not that simple. Social security retirement starts at 65; it is paid from from employee and employer contributions plus interest from investment. However, civil retirement is also at 65 but it is paid from government revenue. Currently, employees contribute nothing towards retirement; they have no skin in the game. Receiving a monthly check is a function of government having the money to pay. This method is unsustainable and it needs fixing.
  • Xxx (23/08/2018, 14:05) Like (15) Dislike (0) Reply
    one thing is clear I feel sorry for the new government they will be in a big hold
  • see now (23/08/2018, 14:09) Like (25) Dislike (0) Reply
    This Auditor General know her job, but she was being stifled. Now that NDP is so lame at this stage to clamp down on anyone, we finding out how unsustainable so many of these fully funded government programs are. All beneficiaries in these programs must contribute something to sustain these programs somehow, and some of the added allowances to government officials need to be eliminated completely. Belt-tightening should be the order of the day moving forward. It is time for us to cut out the excesses, or the generations coming will surely suffer.

  • E. Leonard (23/08/2018, 14:16) Like (23) Dislike (1) Reply
    Retiree funding is an unfunded liability for government that is approaching approximately $300M. It does not appear employees contribute any thing to the retirement system; annuities are paid out of annual government revenues. The current process is not sustainable. Could declining government revenue adversely impact retiree pensions? If yes, this uncertainty should alarm all retirees. If government does not adequate revenue to its obligation, what is the priority of retirees annuities? With a projected payout of $14.3M but only $1.01M in the retirement fund should be an unsettling situation. Suggesting for fixing the system be fixed?

    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.
  • 1 (23/08/2018, 16:37) Like (11) Dislike (1) Reply
    Ndp must go
  • DON Q (23/08/2018, 18:21) Like (7) Dislike (1) Reply
    that is why we need to see the pother reports the bvi is down hill
  • Quiet Storm (23/08/2018, 20:35) Like (3) Dislike (0) Reply
    @E. Leonard, what is a sinking fund? It sounds like a diminishing fund. Can someone, anyone simply explain.
    • @quiet storm (24/08/2018, 09:40) Like (8) Dislike (0) Reply
      Google it. On-the-otherhand, never mind, Sorry. I just remembered our dismal internet speed; it will be explained faster by E. Leonard. Carry-on...

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