Pension scheme in VI unsustainable- Claude O. Skelton-Cline
He explained, "Right now, you have what is called a non-contributory pension scheme. Nobody pays in but the government. There's no investment anywhere. where they're making money on it, it just comes out of the treasury."
Skelton-Cline emphasised that the pension scheme is unsustainable and cannot function effectively. He noted that numerous studies have been conducted to assess the sustainability of the fund.
"They've done actuary studies and all kinds of other accounting studies that have been studied after study. But every government has kicked the can down the road, and so here we are again."
'Contributory pension scheme' needed
The clergyman appealed to both the government and the citizens to implement a contributory pension scheme.
"I wanna say to you, government employees, and to the government of the day, you need to find a way to implement a contributory pension scheme, where the employee, with the employer, is making a certain contribution."
He advised employees, "This is your money for you when you retire. If you have the government matching what you are doing, then it's more money you have."
Skelton-Cline further pointed out that "folks retiring, and it's insufficient what is happening for them to live off. You cannot afford to continue on the path that you are on."
In February 2025, according to an article by Virgin Islands News Online, the Government of the Virgin Islands announced it would take decisive steps to transition from the current non-contributory Defined Benefit Pension Plan to a Contributory Pension Scheme, recognising the unsustainability of the present system and the escalating financial burden on the state.
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11 Responses to “Pension scheme in VI unsustainable- Claude O. Skelton-Cline”
Nobody plans to fail, but many fail to plan, something we seem to be good at.
The issue, I have with the HSA own is they refuse to tell you the basic about the plan. Such as what percentage will be paid on investments? What companies will the fund be invested. Also, what happens if someone leave before time. Some employees were approaching 25 years but under the 65. Basically we’re still having these issues. Some staff have left a felt cheated as they had to pay a penalty.