As of July 1, newly hired civil servants will have to make a contribution to their pension plans.
It’s a move that the government insists will help save the treasury a lot of money.
Prime Minister Dr. Hubert Minnis announced in his wrap-up of the budget earlier this week that in keeping with the practices of many other countries, new government hires will have to contribute with a commencement date to be announced soon.
Dr. Minnis added that the reform is necessary in order to address a large pension shortfall.
President of The Bahamas Public Services Union (BPSU) Kimsley Ferguson weighed in on the change stating, that without wage increases, the plan will put an additional burden on the backs of Bahamians.
Ferguson called for more consultation with stakeholders, as he maintains that the existing pension scheme is simply inadequate.