The Barbados Union of Teachers Opposes Proposed Increase in Pensionable Age, Citing Injustice for Teachers

The Barbados Union of Teachers (BUT) is opposed to the proposed increase in the age at which workers get a pension from the National Insurance Scheme (NIS), saying that it would be “unjust” to require teachers to work until they are almost 70.

BUT President Rudy Lovell said on Monday that while discussions were previously held with some stakeholders about the state of the NIS, he expected proposals would be brought back to stakeholders for further consultation before going to Parliament.

He said the union is concerned about the pensionable age moving from 67 to to 67 ½ in 2028 and then to 68 in 2034; that the age at which persons become eligible to receive a reduced pension will be adjusted from the current age of 60 to 61 in 2025, 62 years in 2028 and 63 years in 2031; and that the number of contributions to be eligible for a pension would increase from 500 to 750.

“The union is opposed to these increases. These changes are asking workers to work closer towards the years many may have envisioned engaging in relaxation or fun and frolic. Given the need for teachers to be physically active and to be able to engage the student population, it would be unjust to ask a teacher to work until the age of 68 or even to work to the age of 63 before being granted early retirement,” Lovell said in a statement.

“Research suggests that many teachers opt for early retirement and these measures will serve to disadvantage them.”

Lovell stressed that like many other civil servants, teachers would struggle to keep pace with the challenges of work life at the age of 68, and some may be forced to retire early with a reduction in benefits after many years of service to the country and the children of Barbados.

Minister of Labour Colin Jordan’s announcement in Parliament last month about the changes to the NIS sparked an outcry from some sections of society and led to concerned residents marching in The City to protest the move.

Lovell said that notwithstanding the efforts to restructure the NIS, it was unacceptable that, over the years, the Scheme’s funds have been used for various reasons which have led to the need for drastic measures.

He asked whether further changes would be made to the NIS in the near future.

The BUT president said while the union has started the process of establishing a retirement savings plan for teachers, it remains concerned about the changes since the increases are occasioned by numerous factors, including writing-off monies owed to the NIS and the non-payment of contributions by some employers.

He questioned whether measures would be put in place to deal with those issues.

“Will this pattern continue? Will the [National Insurance and Social Security (Amendment) Bill] put measures in place to ensure employers are making timely payments to the NIS? Furthermore, how will the move to put senior public servants on contracts impact the NIS? Apart from investments and payment of contributions, will this legislation prevent the use of NIS funds for unrelated purposes?” the union leader queried.

“The BUT stands willing and ready to engage in discussion on this proposed legislation with the Government of Barbados and other stakeholders.”

So far, the Unity Workers’ Union (UWU) had made it clear it opposes the Government’s NIS proposals, while the National Union of Public Workers (NUPW) has queried whether there was any room for the Government to “withdraw” the plan to increase the pensionable age.

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