Increase the public service retirement age to 65 years!

Jun 05, 2024 Features / Columnists, Peeping Tom

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Peeping Tom…

Kaieteur News – A debate has been reignited in Dominica over the fact that public servants must wait five years after retirement to receive social security payments. It is a debate that the PPPC government has ignored in Guyana even though the issue has been in the public domain for sometime now.

Currently, public service employees and teachers retire at 55 years old, while some public corporations extend the retirement age to 60. Upon retirement, these public servants and teachers face a challenging period without a pension, waiting five years for their National Insurance Scheme (NIS) pension and ten years for their social security (old-age) pension. This situation creates a significant financial gap for retirees, posing a question: how are they to survive between retirement and pensionable age?

The Commission of Inquiry (COI) into the public service, launched under the APNU+AFC government, proposed sensible and fair recommendations to address these issues. The COI recommended raising the retirement age to 65 for new entrants and current public servants below 50 years old. For those below 55 years, it suggested an option to retire at 60 or any time before reaching 65, with a mandatory retirement age of 65.  The COI advised against reemploying retirees in established public service positions. This perhaps was intended to address concerns about the upward mobility of younger staff. However, these recommendations were not implemented by the APNU+AFC government, leaving the current system unchanged.

Extending the retirement age to 65 years is an advisable route towards ensuring greater financial stability and dignity for public servants. Firstly, it aligns the retirement age with the social security pensionable age, thereby eliminating the period of financial uncertainty faced by retirees. This change would mean that upon retirement, individuals would be eligible to receive their social security pensions immediately, preventing the financial hardship that currently plagues those who retire at 55.

With all the chatter over life expectancy, raising the retirement age reflects the projected increased life expectancy and the need for sustained income in later years. As people live longer, they require more financial resources to support themselves. By extending the retirement age, the government can help ensure that retirees have sufficient income to cover their needs throughout their retirement years.

Extending the retirement age can contribute to the overall efficiency and productivity of the public service. Experienced and skilled employees will have the opportunity to continue contributing their expertise, thereby enhancing the quality of public services. While extending the retirement age is essential, it is equally important to address the issue of reemployment in the public sector. The COI recommended prohibiting reemployment of retirees in established public service positions, a measure no doubt aimed at promoting upward mobility for younger staff. However, it is also necessary to acknowledge the value of experienced professionals and the need for their skills in certain roles. Therefore, a balanced approach is required—one that allows for discretion in reemployment but also sets clear limits.

Implementing a cap of 75 years for employment within the public service and public sector, whether through tenured or contract positions, strikes a fair balance. This cap ensures that the public service provides opportunities for younger employees to advance while at the same time, recognizing the need for experienced individuals in certain roles.

By setting a cap on employment at 75 years, the public service can ensure that younger employees have opportunities for advancement. This policy prevents older employees from occupying positions indefinitely. Allowing for discretionary reemployment up to 75 years enables the public service to benefit from the skills and experience of seasoned professionals. However, it ensures that this reemployment is not indefinite and that it does not hinder the career progression of younger staff.

The proposed changes—a retirement age of 65 and an employment cap of 75 years—offer a sensible compromise. These measures acknowledge the value of experience while ensuring that the public service remains vibrant and provides opportunities for new talent. These changes can help address the accusations of employing geriatrics in government. It also ensures that employment decisions are based on necessity and productivity, rather than on discretionary reemployment that may not always serve the public interest. These changes will provide financial stability for retirees, promote upward mobility for younger employees, and ensure that the public service benefits from the experience and skills of seasoned professionals without becoming stagnant. It is time for the PPPC government to elevate public service reform to the front burner. For too long, public service reforms have been put on the backburner to the detriment of those employed within the service, those who have retired from the service and citizens who must endure substandard service from a demotivated public service.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)

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• National Insurance Scheme, Peeping Tom, public service, retirement age

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