Raise the Retirement Age for Civil Servants

Project Updates as at 31 May, 2017

Status: Closed

  • The project has achieved the target outcome desired by Cabinet and has been closed. A Project Closure Report is being finalised.
  • The project focused on increasing the normal retirement age of civil servants and has resulted in:
    • The passage of amendments in June 2016 and commencement on 9th September 2016 of the Public Service Management Law (2013 Revision), the Public Service Pensions Law (2013 Revision) and the underlying Regulations in September 2016.
    • Training on the new legislation, delivered for 400 existing employees and persons who are re-entering the pension plan.
    • An increase in the  normal retirement age of civil servants from age 60 to 65, allowing employees to work up to age 65 ; while maintaining the ability of existing employees to retire as early as age 50, if they elect to do so. This has also reduced the pension liability for Government.

Project Update as at 30 November, 2016

Status: Closing

September 2016 saw the full implementation of project to raise the normal retirement age of civil servants (PSI31) from age 60 to 65.  The changes followed the recent passage of amendments to the Public Service Management Law (2013 Revision), the Public Service Pensions Law (2013 Revision) and the underlying Regulations in September 2016.

The key provisions of these amendments will be to:

  • Allow employees to work up to age 65 by setting open-ended contracts to expire on an individual’s 65th birthday rather than their 60th birthday;
  • Maintain the ability of existing employees to retire as early as age 50 if they elect to do so; and
  • Allow greater flexibility for both the employer and employee to benefit from succession planning.

In advance of the legislation there was face-to-face training of 400 employees. Post-implementation training of employees and advice to persons who are re-entering the pension plan are ongoing.  Post-implementation monitoring will be conducted to determine the number of persons delaying retirement or returning to post-retirement employment.

 


Project Update as at 25 May, 2016

Relevant EY Recommendations:

49 – Explore the impact of raising the retirement age for Government workers to 65

PROJECTS ASSIGNED TO: PORTFOLIO OF THE CIVIL SERVICE (PoCS)

Deputy Governor:  Hon. Franz Manderson

Project Sponsor: Mrs. Gloria McField-Nixon, Chief Officer

Overview (taken from Cabinet’s Project Future Programme Brief): This project will deliver and implement legislation to raise the retirement age of civil servants to age 65, in tandem with legislation brought forward for private sector workers. It will contribute to the maintenance of long term stability in Government finances by reducing the demand on public sector pension plans, enhancing succession planning opportunities within the civil service, and contribute to national productivity by bringing the normal retirement age more in line with international practice.

Status: In Project Execution.

Ministry/Portfolio Update:

  • The Public Service Management (Amendment) Bill, 2016 and the Public Service Pensions (Amendment) Bill, 2016 have been gazetted and are scheduled to be considered during the meeting of the LA commencing 30 June 2016.
  • Implementation Planning is ongoing including finalising draft Regulations, undertaking necessary IT changes, and continuing communications to stakeholders about the pending changes.
  • This project was originally expected to conclude on 30 April 2016 but made it onto the legislative calendar for May 2016 and is now scheduled for full implementation by 30 August 2016.