Government’s so-called “generosity” to pensioners: A cruel reality check

Apr 11, 2025 Letters

Dear Editor,

I am writing concerning the announcement of a “one-off cash grant” by the NIS for persons who have attained pensionable age but with between 500 and 749 contributions, one short of the number for a lifetime pension. The “award” was posted on the Facebook page of Dr. Ashni Singh, a Senior Minister in the Office of the President with responsibility for finance, including the National Insurance Scheme. These awards reveal the government’s startling insensitivity and callousness toward our nation’s retired workers.

For workers who have between 500-549 contributions recorded by NIS (representing approximately 10-11 years of labour at 50 contributions per year), the government offers $260,000. This sounds substantial until one realizes it amounts to just $84.80 per day when spread across the average 8.4-year pension term (from age 60 to the average pensioner’s age of 68.4 years). Continuing with these derisory awards, we note the following:

– Those with 550-599 contributions receive $390,000 ($127.20 daily for the rest of their expected lives)

– Those with 600-699 contributions receive $520,000 ($169.60 daily for the rest of their expected lives)

– Those with 700-749 contributions receive $650,000 ($212.00 daily for the rest of their expected lives)

These individuals dedicated over a decade to formal employment, dutifully making their NIS contributions, “awarded” what can only be described as a pittance in return. Many have contributed far more than what appears in their official records, victims of an inefficient system that has repeatedly failed to document workers’ contributions properly. This administrative failure represents 28 years of abysmal oversight – 24 years under PPP administrations and 4 years under the Coalition Government. For nearly three decades, successive governments have allowed the NIS to deteriorate, ignoring actuarial recommendations, neglecting their responsibility to ensure proper record-keeping of workers’ contributions while expecting these workers to fund the system.

What makes this situation particularly galling is its presentation and timing. The government’s announcement features the President’s image more prominently than the actual awards, suggesting that these meagre sums should be received as generous gifts rather than the rightful entitlements they represent. Although these payments were announced several months ago, the timing of their implementation now, with such prominent political imagery, can only be interpreted as an undisguised attempt to bamboozle voters, using pensioners’ rightful entitlements as political currency for the upcoming elections.

Adding further insult to injury, these paltry payments are financed from a $10 billion allocation in the 2025 Budget. This substantial sum represents about 40% of the total amount paid to all 40,327 full pensioners by the NIS in 2022. Rather than using these funds to improve the lives of all pensioners meaningfully, the government has chosen to distribute them as politically timed handouts, creating the illusion of generosity while shortchanging those who have contributed to our nation’s development.

Rather than taking responsibility for successive governments’ collective failure to provide proper oversight and implement necessary reforms, the current administration now presents these derisory payments as some gift when they represent a tiny fraction of what workers are rightfully owed after decades of governmental incompetence.

Yours faithfully,

Christopher Ram

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