Higher retirement age recommended for public servants by the CoI

Jun 07, 2017 Letters

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Dear Editor,
The Commission of Inquiry into the Public Service of Guyana (CoI) 2016, under the Chairmanship of Professor Harold Lutchman, referred to the current retirement age of 55 years, and with approval 50 years in the Public Service. The CoI reported that Public Sector organizations such as the Bank of Guyana, the National Insurance Scheme, the Guyana Revenue Authority, and staff of the Office of the Auditor General have a retirement age of 60 years. The retirement age for staff at the University of Guyana is 65 years, and for the members of Judiciary and the Auditor General, the retirement age is 65 years.
The CoI Report further stated that the Private Sector also has higher retirement ages based on pension schemes providing for retirement between 60 and 65 years. There is also no fixed retirement age for top executives in the private sector. Similarly in public life, the CoI noted there is no retirement age for Members of the National Assembly, Ministers, Leader of the Opposition, Vice-Presidents, the President and their advisers.
In the context of employment service, the age of 55 is too early an age for retirement for Public Servants.
The CoI stated that testimonies to the Commission support and advocate for higher retirement age for public service staff. It is argued that at age of 55, Public Servants would have acquired deep knowledge and wide experience in public management and in their professional and specialist fields. It would be a great loss of experience, skills and expertise to the Public Service with a retirement age at 55 years. This is one of the arguments used to justify the re-employment of many retired public servants on contract, immediately upon retirement.
The CoI further reported that a survey of the Human Resource Practitioners in the private sector recommended a retirement age of between 60 and 65 years. This was also in line with the testimonies to the Commission by public servants and individuals. The advocacy calls for a retirement age of 65 years with an option of retirement at 60 in the public Service to provide for the retention of valuable, experienced and skilled rofessionals.
The COI drew attention that the age of retirement for civil servants of other countries including the British Virgin Islands, Suriname, and Trinidad and Tobago where the retirement age for Public Officials is 60 years. The current retirement is 65 years in Bermuda, and 66.5 years in Barbados and in Dominica. Canada has abolished retirement age on the grounds of non-discrimination, while International Organizations within the United Nations System retires International Civil Servants on attaining 62 years of age. The current retirement age from the Republic of South Africa is 65 years.
The CoI Report affirmed that the higher retirement age of 65 years would provide for higher pensions under the Pensions Act for public officers who would also continue to contribute to the National Insurance Scheme (NIS) until the age of 60 years when NIS pensions would be paid. This would further increase the finances of the NIS scheme by the extended contributions from the Public Service of the State and its employees for an additional period of five years, thus contributing to the continuing viability of the National Insurance Scheme.
The Commission stated that it was convinced that a higher retirement age for Public Servants would be mutually beneficial for the State, the public servants, and the National Insurance Scheme. The CoI accordingly recommended:
– a new retirement age for new entrants into the Public Service, and those currently in the Public Service who are below 50 years of age, be retired on attaining 65 years of age, with the option of retiring on attaining 60 years;
– that pension entitlements be calculated at a maximum of 43 and one-third service years; (as against currently 33 and one third service years)
– that public servants who are currently below 55 years of age, be allowed the option to retire on attaining 60 years or any time before 65 or on attaining 65 years of age;
– that no public servant retiring from the Public Service before attaining the age of 65 years should be employed on contract in an established Public Service position.
– That the Pensions Act Chapter 27:02 be amended as may be required to provide for higher pensions as a result of the higher retirement age.
Following consultations with the GPSU, the forgoing recommendations should be considered for implementation without delay. Together with many other recommendations of the CoI, a stronger, professional Public Service can be developed and nurtured to serve the people of this country in keeping statutory obligations of public service officers, and the national development policies and programmes.
Joshua Singh

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