CS fully behind new retirement age
Cayman Islands Deputy Governor Franz Manderson in the Legislative Assembly 20 Nov 2015
(CNS): The deputy governor has said that members of the civil service are “overwhelmingly in support” of legislative changes that pave the way to allow government workers to stay in their jobs and the public service pension scheme until they are 65 years old. Franz Manderson presented two amendment bills to parliament Friday that will change the Public Service Management and Public Service Pensions laws to extend the working lives of civil servants and allow them to save for their retirement for longer. Although not compulsory, the head of the service is expecting a high take up.
Manderson said that even before the law has changed, around 90% of civil servants who became 60 years old in 2014 had opted to stay in their jobs in the preliminary transition period the service introduced ahead of the planned legal changes.
“Even without compulsion most people are choosing to work longer,” he said, explaining that at present they cannot pay more into their plans but the change in the law would allow that to happen. Civil servants that have or will opt to stay on post 60 until they are 65 will be able to suspend taking their pension and re-enter the scheme to accrue more savings.
Manderson told the Legislative Assembly, which supported both bills, that with the changes in life expectancy, civil servants wanted and needed to have longer working lives. He said increased retirement is happening the world over; it has been changed in the private sector in Cayman and one of the recommendations in the EY Project Future report was an increase to the public sector working life term.
Following an extensive education campaign in the service, the majority of workers were very much in favour, Manderson said, as he outlined the benefits. This included the retention of experience and talent within the service and allowing productive members of society continue to be productive, to earn more for longer and to save more in their pension schemes.
Although it will not be a huge addition to the pension pot, the five extra years of payments would make a gradual difference and help dent the past service liability of the government pension scheme, Manderson said.
While keeping senior people in the service longer may delay the promotion of younger public servants, other changes to the Public Service Management Law would allow for some flexibility in the service, with targeted transfers and for older workers who retain their pay grade to take less demanding roles if they want.
With succession planning in the service an important factor and pressure to reduce the overall government headcount by some 11%, which Manderson said had to be a gradual process, as head of the civil service he now has the right, in specific circumstances, to move staff around to allow talented younger workers a chance to advance.
But the most important factor in changing the law was to give government workers an extra five years of earnings and accrue more payments into their pension, increasing savings and improving the chances of a more stable, independent retirement.
Manderson pointed out that people may want to retire but they simply cannot afford it, as he debunked what he said were misconceptions about civil servants living like kings and queens in retirement.
The DG also revealed that the average age of the civil service is currently 43 and more than 5% are now 60 or over. But with a quarter of government workers aged between 50 and 59, the service has a significant pool of seasoned, experienced and talented staff that it does not want to lose.
Of course they are! They all want to start borrowing chunks of it to pay off the mortgage then get the house on the market and get it converted into good old hard cash! It is not just a “land grab” for the government only. I even know of someone who has gone back to her maiden name to get another first time buyer perk package!
I notice you didn’t canvass any of the expat community just to see if they are behind it!
Don’t forget!! Each and every MLA gets theirs NOW!! Now. Right now.
That’s not true! This does not apply to all civil servants. The govt are excluding some sectors from this proposal for reasons they will not discuss. What happens to the rights of the Caymanians within that sector.
which sector? the entire public sector and police is covered? who is missing?
I probably have around 40k languishing around in some pension fund somewhere.
If anyone wants it, let me know. It is no good to me.
The only condition is that you pry it out of the hands of the dishonest government within 3 months. I am eligible for retirement.
Do that and it is all yours. I give you my word. I will give you all the documentation you need.
You forgot to give me your name and contact number. I would love to take that 40K off your and government’s hands over the next 4 years.
Not anymore! That will be gone by 2024 or when you are 65, whatever comes first!
Everyone over 60 that remains in the Civil Service is equally responsible for the dump and should be sent to deal with it.
So what happens to the private sector employees? Don’t we have to eat too in this ever cost increasing country?
I heard that most people working there had actually retired anyway, they just turn up to pick up a paycheck and other benefits? Could that be true?
Only at the port
To 5.21pm I guess you are one of them since you seem to have so much time to listen to such rubbish.
Nah 10.38, but good try.
5:21 Its a lie and you know it.
We should have paid our dues to our masters by 55.
Screw our bullshit slavery system. God gave plenty for everyone. Greedy elitists with their puppet politicians and bankers have done their best to destroy a good thing and the most amazing thing is that they have the gall to blame us.
Most people are living a lot longer-how do you propose to fill the gap in pensions and medical bills which come as the result of that pure fact? Its currently not funded for…plain and simple and a worldwide phenomena.
You sir are precisely what I am warning against. Think about that when you are lying in your air-conditioned bedroom tonight. You sound kind of smug. Let me guess, you are a lawyer from the UK with a privileged life even though your car was bought with a bank loan.
No, I cannot see your IP Address. If you can’t manage it, please teach your children a little humility.
Call that an answer 7.42? Or is your head stuck up your a$$ waiting for others to solve your problems?
With only 40k in his retirement plan I doubt he is a lawyer.
People living longer has been known now for many years. Governments globally could have done more to educate it’s people and prepare for better. Instead they mostly choose to bury their heads in the sand or kick the can down the road…whilst commending themselves and eachother.
Not the point, we have known this too and could have acted, should have acted ourselves.
Can you read?
Radical man, radical.
Did anyone notice the statement “with targeted transfers and for older workers who retain their pay grade to take less demanding roles if they want.”
So they are saying that when you reach 60, you can keep your salary but do less work.
100% Caymanians think about your children for a change, if you take all the loot and have them pay for it, it will bankrupt and impoverish the country.
Their best bet is to get suspended on full pay then they can sit at home for years or get another job and double their income.
You are not allowed to take another job if suspended on pay.
more time at the trough for our civil servant friends……
1.10pm Your comment is disrespectful, bigoted and disgusting.Civil servants are persons with basic human rights; you have chosen to lower them to the level of pigs .Shame, shame, shame on you.
So do the people who have to use their services. I have never seen one that treated the public it serves with any respect. What goes around….
Jobs for life and benefits forever. That’s great for washed up dinosaurs, but what it really means is fewer opportunities for young Caymanians.
The 90% of civil servants who became 60 years old in 2014 had opted to stay in their jobs … why? Look at the economy man! To retire is dangerous because the cost of living and doing business here is high.
If I could take my lump sum before 60 and use that monies to buy or invest into another country like a third world one, I would. Well-off Caymanians may handle living here, but the rest of Caymanians have to be in their own home like expats… ending their monies out of the country through Quick cash and Western Union if they want to see anything fruit in their savings.
Imagine … we have alot of young Jamaicans coming here like they are broke even shaking up and doing all like Domestic works here, owning concrete 4bed room homes in quiet Jamaican neighborhoods. But many Caymanians in the 30’s to 50’s of age can’t even afford to get a 1 bedroom house. And then we have banks that love putting folk on 200,000 dollar loans for life. By time 20 years is up, interest increase. Yet a broke-arse Jamaican you think have nothing, yet send their monies down and made in less than 5 years what would take you 20 plus years.
This is reality folks. And Im not just picking on JA expats. We have many expats that come here and benefit well… but where can the Caymanian go. We say Cayman is better than them… in alot of ways, I beg to differ.
We need to follow the UK and make tighter Immigration laws (and dont be hypocritical and say we and Ezzard is being protectionist, because the UK showed us how protectionist they were some days ago).. And we need to reduce more the high cost of living and doing business for born Caymanians! Yes we do. It is time we think about our own and next generation, or crime will increase and social disorder.
My 2cent :/
well and the premier is giving away permits like candy…well expensive candy but if you can pay the jobs yours.
The Jamaicans and other foreigners you complain about work hard and budget their money. The few who are able to invest in modest homes have done jobs few Caymanians would consider doing. How many Caymanians are sitting at “mommy” house right now refusing to take a job at Burger King because it’s beneath them? Jamaicans and other foreigners appreciate every penny they earn. They have bank loans on their homes, too. They are willing to work a second and sometimes third job to pay for them. Caymanians also need to stop investing in homes that are far to large for them to handle financially. If you really can’t afford a 4 bedroom house don’t buy it.
You’re dumb! Find me a home in Cayman that’s a one bedroom that an average Caymanian can afford! Unless you have a good job and position, making 3000 and over … you can qualify to become one of the many debt-slaves for the bank to pay off a loan that could take you 20 years. Compare that situation with many in Jamaica and elsewhere and you can never say its the same. So you are donut pal! Also you said they “are willing to work a second and sometimes third job to pay for them.” Tell me doe-doe… because apparently you are making this an issue of whose lazy and who isn’t. FYI, I have seen more lazy people from where you came from than from anywhere else, and statistically they are in the thousands! Alot of deadbeat fathers smoking herbs, and women abadoning their children in Jam for better life. Send them barrels and write “I love u” letters as if thats what they need to develop. Your crime rate is terrible! If you are from Jam you have no inch of qualification to tell us what we need to do. Jamaicans are leaving their country by the hundred of thousands! You said,
How many Caymanians are sitting at “mommy” house right now refusing to take a job at Burger King because it’s beneath them? For your information, you can take the Burger King job and send it down your Quick cash or JN transfers arse! Its may convert to lots of monies for your fancies :)) But I am a Caymanian can never do that, commonsense will tell me a Burger King job is not for me to survive in a society of a high cost of living! That is like you living in Jam and a man tells you that you are lazy because you are not sweeping streets, but you know full well by sweeping the streets it will NEVER make ends meet! So that means your lazy, eh?! Your real dumb buddy! You better don’t come to my house and talk like that putting down other Caymanians. You better watch yourself buddy! You come here, you respect… but never speak for us! Btw … like I said I have nothing against Jamaicans but apparently you are one ignorant Jam head or I am talking a dumb well-off Caymanian breed that needs correction. Don’t know which is it? Peace 😉
I agree 100%! Those older workers have proven to be an asset to the CS due to their knowledge and experience within the various departments. Another realistic point is that these senior citizens also have financial obligations that require an income. Therefore, unless sickness prevents them from working, allow them to do so because it’s less of a financial strain on social services when they become unemployed and their pensions can’t cover their monthly expenses.
Also, make it mandatory for each employee nearing retirement age, to meet with a financial consultant to go over their expenses and produce a payment plan/strategy that would help them mange their monthly payments and income wisely which could allow financial stability (lowering debt ratios) prior to retiring.
Nearing retirement age?? That plan needs to be in place by age 35 for the latest. That is part of the problem. Everyone waiting until they see 60 in the headlights before making a plan as to how they will live when there is no more monthly salary coming in, but rather a much reduced pension.