Questions on the pensions change

By Claire Small-Warner
| Wed, October 03, 2012 - 12:01 AM

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The statement of pensions under the Pensions (Miscellaneous Provisions) Act 1975-31 in keeping with Section 27A(1-3) of the Pensions Regulations, Cap 25, states:

“An officer to whom this regulation applies and to whom a pension may be paid under the act shall have that pension reduced by the amount of pension payable to him under the National Insurance And Social Security Act (in this regulation referred to as the National Insurance Pension).” This process is also referred to as abatement.

This regulation applies to an officer who entered the Public Service after September 1, 1975.

Because I am not au fait with and do not understand the regulations, I have a few questions I hope someone with the knowledge can reply to.

1. If an officer entered the Public Service after 1975, why pay National Insurance or have it abated from his wages or salary knowing that he/she would not be able to collect his/her contributory pension after all those years?

2. How are we to survive in light of the increasing prices of commodities and services after losing or having our pension abated by almost 50 per cent?

3. Is this abatement of our contributory pension happening because the fund is being used for other purposes other than paying our contributory pensions in our evening years, after committing, dedicating and going beyond the call of duty and, in some cases, being passed over for promotion?

Investments are good, but there is a chance of loss. And if my contributions, or some, are invested and a profit realized, should I not realize a profit too?

Just a real layman asking. Were town hall or other meetings held to fully help us understand the abatement?

Maybe I missed them.