adminservants, the Public Service Commission has said.
In a statement, the PSC said the review of pensions will now be effected next month, without specifying the reasons behind the postponement.
It is in keeping with policy to review levels of pensions each time there is a review of salaries for members of the Public Service.
However, PSC said “due to circumstances beyond our control, State Service Pension increases will not be effected in July 2011 as was anticipated”.
The effect of the postponement is perhaps negligible insofar as the increases will be backdated to July.
The level of pension review could also see the maximum monthly insurable earnings of US$200 being reviewed upwards.
There have been complaints that the current levels of pensions are inadequate to sustain the recipients, particularly for those living in urban areas who have no other savings to complement their National Social Security Authority pensions.
NSSA general manager Mr James Matiza earlier this year told a NSSA strategic planning workshop that the average contribution rate for private occupational pension schemes was
22,5 percent of an employee’s gross salary.
The minimum pension was US$25.
“We are only collecting 6 percent of US$200 and paying out a minimum pension of US$40,” he said.
The reduction in the contribution rate and the imposition of the US$200 insurable earnings ceiling came into effect in May last year, after Government’s intention to make these reductions was announced towards the end of 2009 in the Budget Statement for 2010.
NSSA is regularly provided with actuarial advice on the contribution level required to ensure adequate benefits on retirement.
The contribution rate was adjusted from 6 percent to 8 percent of a person’s salary with effect from January 2009, which was reversed last year.
Observers contend that the intention behind the move appeared to have been to increase employees’ and employers’ disposable incomes.
Online Reporter