GOVERNMENT HAS approved pension increases for just under 17,000 retirees on its pension roll, retroactive to July 2003.
By January of next year, almost 17,000 Government pensioners are to benefit from about $200 million in pension payments, dating back to July, 2003.
During yesterday's sitting of the House of Representatives, Fitz Jackson, State Minister in the Ministry of Finance and Planning said $200 million has been provided for the increases, including payments to widows, widowers and dependants, for the 2003/04 fiscal year.
The pensioners to whom the increases will apply, make up 86 per cent, or 16,756, of 19,553 individuals paid by the Accountant-General.
DIFFERENT CATEGORIES
They include pensioners who were in retirement for not less than two-and-a-half years at July 1, 2003; at least 55 years of age at July 1, 2003; retired on the ground of ill-health regardless of age; widows, widowers and dependents in receipt of pension prior to July 1, 2003; as well as those previously covered by the United Kingdom/Jamaica Public Officers Agreement.
Outlining the increases, Mr. Jackson said there would be:
A 10 per cent increase on gross pensions for pensioners receiving less than $50,000 a month
An increase of $5,000 per month for pensioners receiving $50,000 per month and over;
A six per cent increase for widows, widowers and dependents subject to a minimum increase of $500 per month (but total pension after increase should not be lower than $5,000 per month);
A six per cent increase for other dependents subject to a minimum of $500 per month; and
For pensioners who, prior to August 1, 1997 were covered by the UK/Jamaica Agreement - both a 10 per cent increase on gross pension of less than $25,000 per month, and $2,5000 per month on gross pension of $25,000 per month and over.
"The minimum pension for widows and widowers was also increased from $43,500 a year to $60,000 a year," Minister Jackson said.
He noted that pensioners paid by other agencies covered by the Government pension plan, such as statutory bodies, will also benefit from the increase.
The move is a result of a Cabinet decision that Government pensioners should be given annual increases to minimise the effect of cost of living increases.
