The Cabinet of Antigua and Barbuda has expressed concern about the Pension Plan for State Insurance employees.
To this end,the top Management of the State Insurance Company and the Chairman of its Board recently met with the Cabinet to explain the troubling impact of the firm’s pension plan on the survivability of the company.
It was pointed out during the meeting that payout of pensions under the plan would require more than one-half of the capital of State Insurance to meet obligations to retired employees, at this time.
In less than twenty years, all of the assets of the State Insurance would be consumed by pensions, if the desired pension plan were to be implemented.
The Cabinet advised the Manager and the Chairman of the Board that the end result of the plan is untenable, and the Cabinet cannot agree to allow the plan to subsist.
The conversion of the firm from a statutorily-based firm to a private company spelled the end of the pension plan, and the reversion to a plan that is customary among private firms.
The retiring employee becomes eligible for the contributions made by both the employee and the company when the age of retirement is achieved. The employee would also be entitled to Social Security monthly payouts.