THE decision by Prime Minister Dr Andrew Holness to finally accept his substantial salary increase that was granted in 2023 but which he declined to accept at the time will see all but one former prime minister or their spouses similarly benefiting.

While former surviving Prime Ministers PJ Patterson and Portia Simpson Miller will see their pensions move to $28.5 million — in line with what Holness will now receive as his salary — Bruce Golding will receive only two-thirds of the amount or just under $19 million. This is based on a decision Golding took just five months after he became prime minister in September 2007.

One of Golding’s first acts as prime minister of Jamaica was to amend the Pensions (Prime Minister) Act to allow for changes to the formula by which a retired prime minister receives a pension.

As stated by JIS News at the time, then minister without portfolio in the Ministry of Finance and the Public Service, Senator Dwight Nelson, explained during a sitting of the Senate that under the 2005 amendments to the Act, a prime minister, on ceasing to hold that office and who was no longer a legislator, was eligible to receive a pension equivalent to the current salary pertaining to that office.

Based on the 2008 amendments, a person who ceases to be prime minister at any time after September 11, 2007 — the date Golding was sworn in as prime minister — would receive a pension equivalent to two-thirds of the annual salary appertaining to the current office of prime minister, instead of an equivalent salary.

“The entitlement of persons, who have held the office of prime minister prior to September 11, 2007 and who have ceased to be legislators, should not be affected.

“Other amendments include a provision to allow surviving spouses and dependents of former prime ministers, who are currently receiving benefits, to continue receiving such benefits.

But there was also a requirement for the current holder of the office of the prime minister to elect to receive either the current pension entitlement or the proposed pension entitlement.

Based on this requirement, Golding could have opted to accept the full amount as he explained to the Jamaica Observer on Saturday.

“The amendment, which I authorised, limiting the prime minister’s pension to two-thirds of the current prime minister’s salary, would not have applied to me since I became prime minister before the law was amended,” said Golding.

“However, as a matter of principle and conscience, I elected to receive two-thirds and a special provision had to be made in the Pensions (Prime Minister) Act Section 4 (1)(a) to allow that election to be exercised. I will continue to receive two-thirds,” Golding added.

In 2005, when Patterson was prime minister, the Parliament amended the legislation, pegging the pension of retired prime ministers to 100 per cent of their salary — moving it from the previous two-thirds. The amendment brought it in line with the pension paid to former governors general who receive a pension equivalent to 100 per cent of their salaries.

Golding, who was Opposition leader in 2005, took issue with the amendments, which would allow for the retired prime minister to be accorded 100 per cent of the current salary of the present prime minister. He said the Opposition considered the arrangements under which a retired prime minister would get two-thirds of whatever the salary amount that was being accorded to the Office of the Prime Minister at that time “ample provision”.

“We are opposed to moving the pension of the prime minister beyond the current provision, which is two-thirds of whatever the prime minister’s salary is at any point in time,” Golding insisted.

In a statement on Friday, the Office of the Prime Minister stated that after careful review and internal consultations, it was agreed that Holness should conform to the established emoluments and remuneration for the office. It means that Holness’s $9.16-million salary will move to $28.5 million.

The change is to take effect as of September 2025, and adjustments are also to follow for former prime ministers and their surviving spouses.

In announcing the change, the statement referenced Holness’s comments in 2023 when he turned down the increase — “another prime minister in the future or a new mandate may give an opportunity to reconsider the prime minister’s salary”.

The decision was taken last year after the new Administration was in place; however, its implementation was delayed because of Hurricane Melissa, the release stated.

Apart from Golding, Patterson, and Simpson Miller, others eligible for pension benefits are the widows of late prime ministers Hugh Shearer, Michael Manley, and Edward Seaga.

Former Prime Minister Portia Simpson Miller

Golding…the amendment, which I authorised, limiting the prime minister’s pension to two-thirds of the current prime minister’s salary, would not have applied to me since I became prime minister before the law was amended

Former Prime Minister PJ Patterson