Gov’t says increase in pensions is coming, but retiree says she cannot spend promises at the supermarket

“Promises, promises, but I can’t take that to supermarket.”
This is how a retired teacher responded to the Cabinet’s
announcement that government pensioners are to receive an
increase in their monthly payments – at some unspecified future
date.

In Notes published on Monday, November 6, the Cabinet says it
decided that, “in keeping with inflationary pressures and the loss in
the value of money over time,” retired public servants will receive
an increase

But, it adds, the precise amount is subject to negotiations and
affordability.

The hike in pensions will be considered in light of the 14% increase,
over several years, that “current government employees are
beginning to enjoy,” the Notes say.

But a source tells REAL News the “talk about 14% is misleading. In
fact, it is a 9% increase outstanding from the last negotiations, years
ago, when public servants got a 5% raise.”

The source says the increase has not been felt because “the Social
Security deduction has gone up every year since. And, on top of that,
inflation is above 5%, anyway, especially for food items.”

Civil servants had been expecting raises this year, 2023, based on
promises made by the Browne Administration prior to January’s
General Election. However, as year-end approaches, no date has
been given for the implementation of the raise, nor for their long-
outstanding backpay.

Hence, the news of a raise in government pensions – for which
retirees have long been pleading – is being greeted with skepticism.
The Notes say that a team at the Ministry of Finance has been
mandated to determine “what is affordable and what revenue
stream is likely to be adjusted to ensure that revenues can match the
increase in expenditure….”

Meanwhile, in related news, the minister of works reportedly
reminded the Executive of the backlog in overtime payments for
security workers in that ministry.

Accordingly, the Cabinet “agreed to set aside an appropriate sum of
money to reduce that backlog and to bring the payments as close as
possible to a zero balance.”

Again, no date to effect these payments was given.