TENDER LAUNCHED FOR REVIEW OF PUBLIC SERVICE PENSIONS AND TERMINAL BENEFITS

BEGINS

 

NEWS RELEASE

 

Tender Launched For Review of Public Service Pensions and Terminal Benefits

 

The Office of the Deputy Governor is pleased to advise that a tender has been issued for a Review of the Turks and Caicos Islands Public Service Pensions and Terminal Benefits (Gratuities) with a view towards implementing a new program in the financial years ahead.

 

The Turks and Caicos Islands Public Service currently exist without a pension or terminal benefits plan as compared to other overseas territories.  Previously, public officers benefitted from a pension plan that was fully funded by the Government. However, with the establishment of the National Insurance Scheme in April 1992, the previous pension plan was gradually phased out, with persons who were employed by TCIG prior to April 1992 still benefiting from the fully funded plan, while officers employed after April 1992 do not qualify for any form of public service pension.  Consequently, the award of terminal benefits such as gratuity payments with respect to locally appointed staff was also ceased in 2012 in an effort to reduce public service costs, thereby removing the right to any form of terminal benefits.

Under the new tender arrangements, a consultant will be hired to assist the newly formed Benefits Committee chaired by Her Excellency the Deputy Governor, in reviewing and assessing the feasibility of implementing a new benefits program in the Turks and Caicos Islands, taking into account the provisions of the previous plan and those that currently exist in other British Overseas Territories.

 

Commenting on this work, Deputy Governor Her Excellency Anya Williams said; “My office is very pleased to be leading on the review of the feasibility of implementing a new Pension and or Terminal Benefits Program for the public service of the Turks and Caicos Islands, which has been a very valid concern raised by staff that dedicate decades of service to the public service of these islands and believe that it is only right that they be adequately compensated for their service upon retirement.

 

The previous terminal benefits program came to a halt in 2012 as a part of the Civil Service Cost Reduction Exercise when public service costs stood at over 50% of annual revenue.  Public service costs since then have been substantially reduced and managed to ensure that notwithstanding increases in pay, award of increments and hiring of new staff, that manpower costs ratios are maintained below 40% to ensure that should there be any shocks to the economy, these costs can be maintained and do not result in another downsizing exercise.

 

As the implementation of new benefits programs will have an impact on these ratios, it is important to ensure that all costs and other factors are carefully considered. We are grateful to the Government of the Turks and Caicos for their support in funding this review and in considering the options for implementation once presented.”

 

Interested bidders may review the above tender on the Turks and Caicos Government Website www.gov.tc /government-tenders or by following the below link.  The closing date for submission is on September 25th, 2019.

 

https://www.gov.tc/government-tenders/2211-tender-notice-tr-19-31-consultancy-to-review-the-turks-and-caicos-islands-public-service-pensions-and-terminal-benefits-closing-wednesday-25-september-2019-9-00-a-m

 

 

ENDS