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VI Pension funding completely unsustainable – Doug Wheatley

-Says territory may be led into bankruptcy if system continues
Social commentator Douglas Wheatley has expressed that the Territory’s current system of funding pensions is completely unsustainable and warned that if this continues, the VI may have to file for bankruptcy. Photo: VINO/File
Wheatley argued that in fast forwarding to the present day, where persons earned salaries close to and in excess of $100,000 and had their pensions computed on the last three years of their earnings, a huge debt was being created. Photo: VINO
Wheatley argued that in fast forwarding to the present day, where persons earned salaries close to and in excess of $100,000 and had their pensions computed on the last three years of their earnings, a huge debt was being created. Photo: VINO
ROAD TOWN, Tortola, VI – Social commentator Douglas Wheatley has expressed that the Territory’s current system of funding pensions is completely unsustainable and warned that if this continues, the VI may have to file for bankruptcy.

While not blaming any particular group, Wheatley said the VI had definitely dropped the ball with regard to pensions. He spoke about the policy that existed in years gone by when persons received small salaries that came with a government contribution to pensions that did not require input from persons’ salaries. “You [were] making a contribution by not receiving a higher pay,” he said.

He argued though, that in fast forwarding to the present day, where persons earned salaries close to and in excess of $100,000 and had their pensions computed on the last three years of their earnings, a huge debt was being created.

He described it as an ‘unfunded liability’ and said in the past nothing was being paid into the system which had been coming out of a general fund. “That is totally and completely unsustainable, completely unsustainable,” Wheatley argued.

Wheatley referenced the ‘motor city’ of Detroit, Michigan in the United States and their recent declaration of bankruptcy and its causes. He noted that the persons working in Detroit as part of the labour force make up a small percentage of the numbers previously and they have incurred pension liabilities. The workforce is so small, he said, that the city can no longer meet those liabilities.

“We can take a page out of that and say if the BVI doesn’t do something about the pension system and the payments of gratuities and pensions, etc, maybe we too will be going into bankruptcy before you know it,” Wheatley said.

6 Responses to “VI Pension funding completely unsustainable – Doug Wheatley”

  • voter (30/07/2013, 08:35) Like (2) Dislike (0) Reply
    The government has known about this foolishness for years
    • talk bring talk (30/07/2013, 09:57) Like (0) Dislike (0) Reply
      The viewpoint found in the Bible is true , " it does not belong to man to direct his steps .
  • shelia (30/07/2013, 12:19) Like (1) Dislike (0) Reply
    the talk shows will rewrite the political history books of the BVI with the dawn of people wanting performance oriented representation and not just blind party politics.

  • Local (30/07/2013, 14:45) Like (0) Dislike (0) Reply
    Mr. Wheatley, Goverments need to look into the private sector they have nothig to offer their staff after working for 25 plus years and labour telling us if you wants to leave you are intilted to nothing only if the company fells like giving you something. Some of these companies just started a pension plan where you but in somethong and they match it. Come on people wake up we are in the 21st century we all have to live after sixty i'm sick and tired of Goverments not looking out for the benifits of the locals in these beautiful British Virgin Islands. We need proper Retirment plan in the private sector and we need it now.

    After 25-30 years thank you.
  • xxxxxxxx (30/07/2013, 17:49) Like (0) Dislike (1) Reply
    whey this mad man going?
  • So true (30/07/2013, 19:14) Like (1) Dislike (0) Reply
    This is very true. They need to look at this seriously. As said, the present day HR persons are more concerned about fat salaries than the future of the BVI. There are hundreds who can retire TODAY. What if they do? Money done....


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