Dear Editor,
It has become standard practice for persons to be recruited into the Guyana Public Service by means of contract. In the annual budget approved by the National Assembly, they are formally categorised as ‘Contract Employees’, amongst whom are included a significant percentage of retirees.
The current retirement age in the public service of 55 years has been inherited from the colonial era; and no administration has troubled to address the issue since the National Insurance Scheme was established, requiring eligibility of 60 years for pension benefit.
In this connection, it does not appear that its sponsors have read the relevant recommendations on this subject – made in the Report by the Commission of Inquiry into the Public Service.
At paragraph 315, the report commented as follows:
“The higher retirement age of 65 years would provide for higher pensions under the Pension Act for public officers who would also continue to contribute to the National Insurance Scheme (NIS) until the age of 60 years when NIS pensions would be paid. This would further increase the finances of the NIS Scheme by the extended contributions from the employer and the employees for an additional period of five years, thus contributing to the continuing viability of the National Insurance Scheme. We are convinced that a higher retirement age for the Public Servants would be mutually beneficial to the State, the public employees, and the National Insurance Scheme.”
En passant, the report noted that there was no stipulated retirement age for parliamentarians and ministers.
The commission then went on to make the following recommendations.
“That the retirement age for new entrants into the Public Service, and those currently in the Public Service who are below 50 years of age, be retired on attaining 65 years of age, with the option of retiring on attaining 60 years; That pension entitlements be calculated at a maximum of 43 and one-third service years; That public servants who are currently below 55 years of age, be allowed the option to retire on attaining 60 years or any time before 65 or on attaining 65 years of age; That no person retiring from the Public Service before attaining the age of 65 years should be employed on contract in an established Public Service position; That the Pensions Act Chapter 27:02 be amended as may be required to provide for higher pensions as a result of the higher retirement age.”
In the process, there are other public sector agencies whose retirement age is 60 years or above. These include the following: the Guyana Sugar Corporation, the Guyana Revenue Authority, the Guyana Geology & Mines Commission, the Guyana Power & Light, and the Demerara Harbour Bridge Corporation.
Could not this one recommendation be implemented in the 21st century? It may well have the effect of reducing the incidence of contracted employees.
It may even reduce the proportion of retired public servants who, at 55 years old, would not have had to then credit the amount of contributions to qualify for the NIS pension benefit.
Given the number of identifiable ‘veterans’ in the public sector, how is the reluctance to raise the retirement age in the Guyana Public Service explained?
Yours faithfully,
E.B. John
