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Freeze will not affect social insurance pensions

A pensions freeze will not affect social insurance pensions, the Ministry of Finance said yesterday.

A Ministry spokesman explained that a new Bill aimed at axeing regular cost of living increases would apply only to the pension funds for civil servants and members of the Legislature — not the Contributory Pension Fund.

Finance Minister Bob Richards last week tabled an amendment to pensions law — and warned that the pensions schemes for civil servants and legislators were massively underfunded and would run out of money if action was not taken.

At present, two-year reviews are carried out for both pension schemes based on the all items consumer price index prepared by Government statisticians.

If the cost of living is found to have risen by 0.5 percent or more, civil service and legislature pensioners are given an increase.

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Published July 02, 2014 at 9:00 am (Updated July 02, 2014 at 8:39 am)

Freeze will not affect social insurance pensions

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