ST. JOHN’S, Antigua, July 29, 2011 – The Management of LIAT (1974) Ltd is proceeding with the introduction of new pension arrangements for its staff. This need has arisen following the collapse of the CLICO Financial Group and the need to ensure adequate pension arrangements for LIAT staff.
Corporate Communications Manager Mr. Desmond Brown explained that when the old LIAT Provident Fund was closed in October 1997, all employees, including pilots, received all contributions paid in the Fund in a final payment.
“A new Pension Plan commenced in 2006 where funds were deposited into CLICO. The rules governing the new (2006) Pension Plan were not the same as the defunct Provident Fund,” Mr. Brown said.
“The 2006 Pension Plan contains a vesting schedule which determines how much of the Company’s contribution is paid to all employees upon departure from the Company, depending on the length of their membership in the Plan.
“The Company has duly applied the vesting rules fairly with regard to all employees including pilots. All employees who have had pension claims have had these met in conformity with the requisite rules governing these arrangements,” Mr. Brown added.
The Corporate Communications Manager noted that following the negative developments concerning the CLICO Financial Group, LIAT’s Board and management moved to secure the workers’ pension arrangements by depositing the funds into a commercial bank in Antigua and Barbuda.
At the same time the Company sought professional advice on arrangements for the finalization of a robust and sustainable pension plan, and has taken steps to secure pension contributions and finalise pension plan documents for the benefit of all employees.
He noted that LIAT has been consistently updating its employees about the status of the Pension Plan and as recently as Tuesday July 26, a meeting was held with the consulting Actuary and LIAT workers’ representatives to discuss various provisions and mechanisms for the administration of a New Plan.
In light of this, the Corporate Communications Manager noted that recent statements attributed to the Chairman of the Leeward Islands Airline Pilots Association (LIALPA) expressing concerns, may have reflected an inadequate understanding of the issues.
He urged that pilots and other employees who were unsure as to the pension arrangements should consult with appropriate management personnel for clarification on these matters.
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