Cox: Pension increase was correct
Seniors pension increases have been reviewed and have been found to be the full nine percent Government promised, Finance Minister Paula Cox said yesterday.
In a press statement, she said the Social Insurance Department had reviewed the pension increases of recipients who had queried the calculations.
?All of the calculations were verified as correct in accordance with the stipulations of the Contributory Pensions Act 1970,? said Ms Cox in her statement.
Ms Cox said: ?I asked officers in the Social Insurance Department to not only double check the four specific cases that have been reported but also to double check that all system changes were absolutely accurate.
?The individual calculations were accurate and all of the system changes reflect the new benefit rates that were approved by the Legislature earlier this year.?
This week an 84-year-old Warwick senior told that the increase came out to 8.75 percent when she worked it out several times with a calculator. Shecalled the pension office where she was told the increase was done in Finance based on the last week of the old calculation. She said it did not make sense as her pension came monthly.
?But it doesn?t matter whether you do it by the day, week or month it?s still 8.75. ?
Ms Cox said calculating pensions was complex. The net contributory pension payment consists of a basic pension plus an increment that varies according to the number of contributions made during an individual?s working life.
The Act also requires an adjustment to the gross pension amount if the yearly average of contributions made is less than 50.
?Therefore, I would encourage any senior who has a question about their benefit payment to contact the Social Insurance Department where staff would be pleased to review the calculation with them,? said Ms. Cox.
Ms Cox said the investigation had showed that more than 8,500 pension payments at the new benefit level were issued in September 2004.
?The positive response has simply been overwhelming and Government looks forward to the continued delivery of other enhancements to the lives of our senior citizens.?
Shadow Community and Cultural Affairs Minister and advocate for seniors rights Louie Jackson said she does not think anyone is out there to scrimp seniors but she believes the amount, which comes to 8.75 when calculated several times, may have been rounded up to nine.
