Pensions Campaign.pdf - Jamaica Teachers' Association

Government committed to cuts to teachers pension.
JTA prepared and submitted to the Joint Select
Committee of Parliament its response to the Green
Paper in November 2011.
Government tabled in the House of Representatives
on November 6, 2012 report of the Joint Select
Committee.
White Paper to be prepared following the tabling of
the new proposals in the House of Parliament.

Pension system to continue to be a Defined Benefit System.
Retention of the payment of the Lump sum (gratuity) but
restoration to full pension after 12 ½ years to be
discontinued.
Pension system to become contributory i.e. teachers to
contribute to their pension.
All teachers from the date of implementation to contribute
5% of salary to segregated Fund.
Retirement age moves from 60 years to 65 years.

Early Retirement may be taken at 55 years but
a penalty of 5% each year if retirement is opted
for between 55 and 65 years.
Employer (Government) to contribute 3.5% of
payroll to the Fund plus $17B/annum for 40
years to fund the legacy liability.
Accrual rate to be reduced from 2.2% to 2.0%.

Pension formula to be 2% times the average of the last 5
years pensionable salary times years of pensionable
service.
New proposals will not affect teachers who are 55 or over
at the implementation date.
Implementation dates as proposed were:
- January 1, 2013 for new entrants
- During 2012-2013 for existing teachers

Has no issue with the movement of the Normal
Retirement Age (NRA) to 65 years.
Supports the establishment of an independently
managed Retirement Fund.
Does not support the calculation of pension benefit
on the average of the last five years’ salaries.
Supports the existing system where pension is
calculated on the final salary.

Regarding early retirement, the JTA is proposing
that teachers currently in service and who will have
30 years of service at the date of implementation
should not pay the penalty. Teachers with less than
30 years could pay the penalty. Also teachers who
take early retirement on medical grounds should be
paid pension calculated using total pensionable
service.

Accrued pension benefits earned by teachers in
service at the date of implementation should be
preserved and calculated at retirement using the
existing formula.
Government must allow teachers to join an
approved Retirement Scheme under the Pensions
Act 2004 to supplement the Government pension.

Supports indexation of annual pension at the rate of
the CPI or a minimum of 3%.
Supports a vesting period of 5 years instead of the
proposed 10 years.
FINAL WORDS!
Teachers need a decent pension.
Cutting teachers’ pensions makes teachers poorer
during retirement.

JTA sent letter outlining its response on the
proposals to the Minister with responsibility for the
public service.
President has participated in discussions in the
media and presented JTA’s position.
The White Paper is in its final stage of preparation.

Hold or attend meetings called on the matter in Schools or
District Associations.
Lobby your MP.
Support any action planned by the JTA.