Dear Editor,
Recently the CEO of the Private Sector Organisation of Jamaica suggested that the current national pension scheme, if left as is, will be in trouble in the near future.
Subsequent to that report, growth for Jamaica was forecast by the International Monetary Fund (IMF) to be down for this year and the next. In addition, the growth rate for the global economy is forecast to be down as well, which translates into reduced foreign direct investments (FDI) to our shores.
I don't think it needs repeating that the country by and large is broke and has limited non-loan or grant income-earning potential in the short term (1-3 years) for reasons already known.
With all that said, I am at a loss as to why such little regard has been paid to the matter of pensions. Given that most workers don't contribute to a pension scheme, we have a disaster in the making. This is so because, at present, what is due cannot be accommodated within our budget, and when workers retire, what will be accommodated won't be enough to sustain anyone. This is so for three reasons: the continued depreciation of the currency, the ever-increasing cost of goods and services, and the fact that people are living longer.
In all likelihood, when this IMF agreement ends, we will seek another as things are more or less stagnant economically. I don't know what our financial position will be, but I suspect the deal will not account for any significant increases to pensions.
Given the limited options available, Dr Phillips and his team of technocrats should be preparing the country with this information and what he plans to do about it. I sincerely hope that he or someone in his office will start acting accordingly.
L Thomas
baddabada@gmail.com
Pension basket empty
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Recently the CEO of the Private Sector Organisation of Jamaica suggested that the current national pension scheme, if left as is, will be in trouble in the near future.
Subsequent to that report, growth for Jamaica was forecast by the International Monetary Fund (IMF) to be down for this year and the next. In addition, the growth rate for the global economy is forecast to be down as well, which translates into reduced foreign direct investments (FDI) to our shores.
I don't think it needs repeating that the country by and large is broke and has limited non-loan or grant income-earning potential in the short term (1-3 years) for reasons already known.
With all that said, I am at a loss as to why such little regard has been paid to the matter of pensions. Given that most workers don't contribute to a pension scheme, we have a disaster in the making. This is so because, at present, what is due cannot be accommodated within our budget, and when workers retire, what will be accommodated won't be enough to sustain anyone. This is so for three reasons: the continued depreciation of the currency, the ever-increasing cost of goods and services, and the fact that people are living longer.
In all likelihood, when this IMF agreement ends, we will seek another as things are more or less stagnant economically. I don't know what our financial position will be, but I suspect the deal will not account for any significant increases to pensions.
Given the limited options available, Dr Phillips and his team of technocrats should be preparing the country with this information and what he plans to do about it. I sincerely hope that he or someone in his office will start acting accordingly.
L Thomas
baddabada@gmail.com
Pension basket empty
-->