Pension payments to increase December 1

Prime Minister Philip Brave Davis announced yesterday that the government will increase public service pensions on December 1.

The prime minister also announced the reinstatement of increment payments for public officers and a $500 lump sum payment this Christmas to people receiving COVID-19 unemployment assistance.

During his first major communication in Parliament as prime minister, Davis said, “These pensioners receive no cost-of-living adjustments and many of them have a combined income of less than $500 per month. It is therefore not surprising that these individuals have suffered greatly during the economic downturn.

“On behalf of a grateful nation, I would like to say a heartfelt thank you for your service. Our gratitude will be reflected by an increase in public service pensions. A sliding scale will be used to make sure the increase correlates with the need.”

He said the increase in public service pensions is intended to support those in need.

Davis said this list does not include former politicians, senators, former judges, former governors general, or their surviving spouses.

“For the 742 persons receiving less than $500 per month in monthly pension, they will receive an increase of $100,” he said.

“For the 2,012 persons receiving more than $500 but less than $1,000 in monthly pension, they will receive a monthly increase of $75, and for the 4,432 persons receiving a monthly pension of greater than $1,000, they will receive a monthly adjustment of $50.”

Davis said the adjustment will cost $6.4 million annually.

He said this is less than the amount owed in business license fees by a developer in New Providence “who received the assistance of the former administration to avoid paying what was legally owed to the government”.

“The previous government chose to help one wealthy developer,” Davis said.

“We choose instead to help thousands of Bahamians who have served our country well, Bahamians who deserve economic dignity in their senior years.”

Lump sum

As for the more than 17,000 Bahamians who receive COVID-19 unemployment benefit assistance, Davis promised a $500 lump sum payment this Christmas. 

“More than 17,000 Bahamians are currently receiving COVID-19 unemployment benefit assistance administered by the National Insurance Board,” he said. 

“Many of these individuals are a year and a half into trying to stretch $100 per week to pay their bills and feed and support their families.

“Last Christmas, as I spent time in communities in New Providence and the Family Islands, including in my own constituency of Cat Island, Rum Cay and San Salvador. I spoke with many Bahamians who had little means to celebrate and whose suffering was evident.

“This Christmas will not be the same. For every person currently receiving $100 per week from the COVID unemployment assistance program, we will provide a $500 lump sum payment this Christmas.

“There is no way to alleviate entirely the suffering you have experienced over the past 18 months, but the hope is that this payment can mark the beginning of a new, more hopeful time for you.”

Increments

As noted, Davis also announced that increments, which are paid to rank and file public officers, will be reinstated this fiscal year.

He said the increments, which are nominal adjustments in earnings for the majority of public officers of no more than $700 per year, were withheld by the previous government, “even as lavish public contracts were awarded to family members of Cabinet ministers”.

“This inequity is now being addressed,” Davis said.

“The effective date for the increment reinstatement is July 2021 and the payment date is January 2022. This reinstatement, which will cost $8 million this year, is being funded from the increase in revenue over forecast experienced in the first quarter of this fiscal year. Arrears will be paid once additional savings have been identified.”

The post Pension payments to increase December 1 appeared first on The Nassau Guardian.

source https://thenassauguardian.com/pension-payments-to-increase-december-1-2/