Pension crisis

IT WOULD cost the Government at least $23 billion if it made a decision to pay public-sector workers in lieu of accumulated leave.

Census data revealed that public-sector workers have accumulated vacation leave averaging 40 days and, in one instance, up to 72 weeks.

Prime Minister Bruce Golding, in his contribution to the Budget Debate yesterday, said the administration would hold talks with the Public Sector Modernisation Committee on the issue of leave management.

He warned against the accumulation of vacation leave by public servants.

"Vacation leave is intended to provide workers with the opportunity for rest and relaxation so that they can maintain themselves in a good physical and mental condition," he said.

Leave arrangement in the public sector is being targeted for standardisation. At present, there is a disparity with those employed prior to 2002 receiving 35 working days' vacation leave, 14 days' vacation leave, 14 days' sick leave and 10 days' departmental leave.

On the other hand, those employed since 2002 are entitled to 14 days vacation leave, 14 days sick leave and 10 days departmental leave.

Meanwhile, the prime minister told the House of Representatives that a team of World Bank consultants has completed a review of the country's public-sector pension arrangements.

"Not surprisingly, they have recommended that the current system be replaced by a contributory pension scheme to which both the Government and the individual employee would make contributions," he said.

Golding noted a recent study commissioned by the Private Sector Organisation of Jamaica which suggests that the cost of pensions for those who have already retired will be $225 billion for the rest of their lifetime.

"That figure increases each year as more people retire," the prime minister said.