Social Security increases Pensions

By VonDez Phipps
Reporter-SKNVibes.com

BASSETERRE, St. Kitts – IN keeping with its commitment to enable retired citizens to comfortably subsist in light of the rising cost of living, the Social Security Board has announced increases in pension payments to all pensioners.

According to the Board, the increases that went into effect January 1, 2009 have been approved by the government as a response to the effects of inflation on the existing Social Security pensions received by persons across the Federation.

All minimum payments have been upgraded by 33%, raising the minimum contributory Age and Invalidity pensions from EC $300 to $400 per month and augmenting the Minimum Widow/Widower Survivor pension from EC $150 to $200 monthly.

Retirees receiving Assistance Pension will also see a 19% increase from EC $210 to $250 while persons already receiving payments more than the minimum will experience increases in varying amounts ranging from 3% to 15%.

In the case of age, invalidity and survivors pensions above the minimum, persons awarded pensions in or before 2005 would be granted a 15% increase; those awarded in 2006, a 10% increase while pensioners awarded in 2007 would be granted a 5% increase. Also, persons awarded in 2008 will be given a 3% increase to their monthly pension.

In an exclusive interview with SKNVibes, Human Resource Manager Chesil Hamilton explained, “Once a person is awarded a pension, it is a fixed figure. From time to time in the work field, there may be increases in wages whether in the form of increments or promotions, in response to inflation. Pensions are paid out in the exact amount that they were initially calculated and so the only way to ensure that pensioners are able to keep up with the increase in prices is to continue giving increases making the value of the pension still relative.

“Traditionally, it [an increase] is done every four to five years as the fund continues in the thrust to safeguard pensioners in the face of inflation. The Board was advised by Actuarial Consultant Derrick Osborne, stationed in the Bahamas, who assessed the increases the fund could handle especially considering the widespread financial downturns.”

Hamilton said the increases represent the most recent opportunity for Social Security to “remain relevant to pensioners” without which, he added, they would not have an efficient financial source to meet their needs.

Minimum payments have seen a total increase of approximately 60% over the last eight years, the most recent of which was a 20% increase given in 2005. ~~Adz:Right~~