Minister hints of pension hike

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Minister of Finance Vishnu Dhanpaul has hinted at a possible increase in pension should the PNM be re-elected in the April 28 general election.

Minister of Finance Vishnu Dhanpaul has hinted at a possible increase in pension should the PNM be re-elected in the April 28 general election. Dhanpaul said the upward adjustment will be done as long as the fiscal space allows. Speaking to reporters about the pensions during the opening of the National Insurance Board (NIB) South Corporate Headquarters at Lady Hailes Avenue in San Fernando yesterday, Dhanpaul said, “There will be no interference, like for instance the senior citizen grant, absolutely no interference with the senior citizen grant, the only thing will be any significant upward adjustment.

” Asked about specifics to this, he stated, “We are not going to interfere with senior citizen grant, the disability grant, the public assistance grant or any of those social services. None, unless it’s an upward adjustment ..



. You can depend on that, no interference whatsoever.” Dhanpaul explained that in the Ministry of Finance, there is mandatory expenditure of $4.

5 billion every month and this expenditure happens, without the country earning $1. He said that part of the $4.5 billion, factored throughout the fiscal year, is for the payment of social services.

“Once the fiscal allows, we will adjust upwards depending on the type of fiscal space that we have,” Dhanpaul said. He said that a person will qualify for a senior citizen grant following a means test. “You can’t expect that everyone turning 65, someone with another form of income, to get the grant.

Not everyone turning 65 can get, let’s call it a senior citizens pension...

Obviously it has to be means tested because you don’t want millionaires getting a senior citizens grant,” Dhanpaul said. On the campaign trail, Prime Minister Stuart Young stated that under his Government, retired public servants will receive a tax free public service pension. In its manifesto, the PNM said it will “eliminate taxation on all public service pensions, except that of parliamentary representatives.

” The manifesto also outlined that, apart from exceptional cases, the payment of pension benefits will be made no later than three months after the retirement age is reached. It also stated that the reviewing of pension eligibility will begin one year before retirement, to allow for timely delivery of pensions. The UNC also stated that there will be no taxes on retirement benefits and private pensions.

Confident of the PNM’s victory in the April 28 election Dhanpaul yesterday said he will outline, in the next budget, all the plans of the Government to take pension beyond the next 50 years. On the issue of employers not filing contributions on behalf of their employees, the Finance Minister said he will support strict enforcement of penalties on such employers. NIB chairman Patrick Ferreira told reporters that more staff has been deployed in this department at the NIB stands by its responsibilities, and will be going after problematic employers.

“On the full extent of the law, there’s a process and we are following the process,” he said as he added that there were already matters before the court. Ferreira said that with implementation of digital transformation at the NIB, employees will be able to view their contributions being paid in real time. He described the employees as being the ears and eyes of their money and that the NIB will pursue any reports where payments are not being made.

He added that there are toll free numbers via which employees can contact the NIB..