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Observer Reporter  
January 26, 2005

ALGA welcomes legislation for payment of pension to retired concillors

MILTON Brown, the mayor of May Pen and the head of the Association of Local Government Authorities (ALGA), yesterday welcomed Tuesday’s passage of a bill by Parliament to provide payment of pensions to retired parish councillors.

The bill – entitled “An Act to make provision for the establishment and implementation of retiring allowances for parish councillors and for connected matters” – supports payment of pensions for councillors who have served since 1986, the year they began receiving salaries.

“It is good, and I know that many councillors are patiently waiting to benefit from the pension,” the ALGA president told the Observer yesterday.

“At least they can be assured, having served the country, that they have some form of benefit to keep them alive,” he added.

Under the bill, retirement allowances shall be paid to persons who have served as councillors for:

. three full terms;

. periods equal in the aggregate to not less than eight years;

. periods which together with that person’s service as a legislator, amount in the aggregate to not less than eight years; or

. in a specified office, for periods which, when added together total not less than eight years so however, that, the aggregate period of service as a councillor shall not be less than three years.

. has attained the age of 55 years; or 50 years and has produced medical evidence, to the satisfaction of the appropriate minister, that he is incapable by reason of infirmity of mind or body, of discharging the duties of a councillor or legislator, as the case may be, and that such infirmity is likely to be permanent; and has ceased to be a councillor or legislator.

Provision is also made in the legislation for councillors to be required to pay contributions for service from January 1, 1986 in order to have the service counted for pension; refunds of contributions in certain circumstances; councillors to elect, where applicable, which of the pensionable payments which may be payable to him under different laws; and prescribes eligibility periods for pensions and widows/widower pensions, among others.

Councillors, who currently take home about $50,000 monthly after tax, not including allowances, will receive the normal retiring allowance payable to any person, or may exercise other options under the law.

On Tuesday, Fitz Jackson, the minister of state in the finance ministry, who piloted the bill, said the idea of providing retirement benefits had been first mooted in the House in 2001 and the plan was for them to get benefits in the same way as members of parliament.

“The idea is for them to get benefits in a way parallel to the members of parliament,” said Jackson.

Yesterday, however, Mayor Brown suggested that the benefits of the pension could best be seen if they are tied to an improved remuneration package.

“To complement the pension, it would be good for us to have the negotiated agreed increases so that the pension will be pegged to a reasonable (salary) rather than the levels we are currently at,” he said.

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