CONTRIBUTION OPTION TO NEW PENSION PLAN ENSURES EQUITY AND SUSTAINABILITY

Basseterre, Saint Kitts, May 23, 2025 (SKNIS): The new Pension Plan introduced by the Government of Saint Kitts and Nevis, has a built-in three percent contribution that ensures it remains equitable and sustainable.

On Wednesday’s edition of the radio and television programme InFocus, Accountant General of the Treasury Department, Levi Bradshaw, noted that persons working more than 10 continuous years will qualify for a gratuity at the end of their service. Persons who work 15 continuous years for the government will be entitled to a pension. Persons who started their service prior to May 18, 2012, can do so without having to pay into the contributory plan if they intend to retire at 55 years old. However, persons employed after May 18, 2012, and employees who intend to opt-in to the new pension plan and extend their service up to the age of 62, must pay the standard three percent contribution.

“We live in a small island state. We all listen to the news and we are all aware that these are [uncertain] times … and the matter of sustainability must be considered,” he stated, noting the many changes within the “neighbour to the north.” “The percentage of the State’s contribution is substantial. We are just contributing three percent, but we are entitled to a full pension and gratuity. Funding pensions is a serious obligation of the government.”

Over 2,000 Government Auxiliary Employees (GAEs) who meet the required years of service, now also qualify for a pension and gratuity calculated using the same formula as the one used for civil servants. Thelma Richard, Head of the Civil Service, said that the government is pleased to have developed this equitable system that rewards GAEs for their years of service towards nation-building.

“They were in a system where they did not receive anything, and we have now introduced a system where they are not just getting something, but they are getting the same as their counterpart civil servants,” she stated. “So it is saying to them that the calculation used to prepare a gratuity and a pension for a doctor is the same as a drain cleaner.”

The new pension system has drawn applause from many GAEs who express that they can retire with the confidence and peace of mind offered by a pension. Persons opting to extend their service up to the age of 62 are no longer required to write every year to request such. They need only to sign the opt-in form and return it to the Human Resource Department before June 30, 2025.

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