Union leader says too many still unaware of proposed pension changes
Outspoken trade unionist Caswell Franklyn continues to voice concern about the proposed changes to the National Insurance Scheme (NIS) and in the public service.
He was the featured speaker at the Democratic Labour Party’s Astor B Watts lunchtime lecture series recently held at the George Street Auditorium on the topic NIS & Pension Reform, where he criticized proposed changes by the Mia Mottley-led administration.
The Unity Workers’ Union leader said he planned to remain quiet after the second 30-0 victory at the polls on national issues but felt compelled to speak out specifically on pension reform. He lamented that many people are unaware of what is happening to their “lifeline”.
He told the party faithful that every prime minister of Barbados outside of Sir Harold Bernard “Bree” St. John, the shortest-serving prime minister, rejected proposals by the International Monetary Fund (IMF) to cut pensions.
Franklyn called into question claims that the IMF carried out an actuarial study on the government’s pension plan, which deduced that pensions were too high. “Have you ever heard about a Public Service Pension Plan yet? There is none. So when the IMF did this actuarial study, they did an actuarial study on something that did not exist.”
The former senator explained however that it should have existed. “… Because the pension arrangements were put in place since 1925 and in the subsequent Act in 1947.”
“What should have happened – the government should have been putting down money every month toward your pension. It was never done. What the government did was pay pensions from current revenues of its salaries. So, nobody ever had a pension plan. The first pension plan the government will have is now, with this current legislation starting on January 1st 2024.”
The union leader reminded that every pensionable public servant is entitled to a pension. “After 10 years of service, you are entitled to a pension… Trust me when I tell you that the maximum pension for a public officer is after 33 and 1/3 years… A lot of people did not know or are not aware that these new arrangements, have taken to qualify for a full pension, at the maximum level, to 40 years. It has gone back to 40 years.”
“They changed the formula, but when you work the formula, you have to work for 40 years in order to get two-thirds of your salary as a pension. Previously, it used to be 33 1/3. Years ago when Tom Adams was prime minister, he changed it to 40… the union’s fought it and Tom was forced to reverse that decision.”
“He only reversed it for the public servants proper. He left the statutory boards at 40 years old. Public servants have now gone up again to 40 years,” he reiterated, highlighting the silence from Union representatives on the matter.
Franklyn said he also has great difficulty with the decision to allow politicians to receive their pensions at 50 years old. “So if you lose your seat, you go and get your pension at age 50. The pension for parliamentarians started in 1969. In those days… the civil servants’ pensionable age was 55. So Barrow put the two of them together. So both were 55 in 1969. Today, parliamentarians are 50, and they are going to take civil servants up to 68.”
Franklyn has led protests on the proposed changes and told the audience that he is willing to speak anywhere on the topic, even to the Barbados Labour Party. “I want people to be aware because a lot of people are not aware of what is happening here.”