Now that teachers and public officers have gotten their salaries restored and increments resumed, it's time to talk about pension reform. A large and increasing portion of the wage bill is consumed with paying pensions - and its long term unsustainability is forcing the dialogue on pensions.
Today the Financial Secretary discussed what's at stake:
Joseph Waight, Financial Secretary
"Average increment is about 3% so it's about 3% of the wage bill. And we are looking at about $20 billion dollars or so to resume the increments."
Reporter:
"So it's available?"
Joseph Waight, Financial Secretary
"It's in the budget yes."
Reporter:
"And then what about pension which has been described as breaking the bank for the public purse? Are you at all encouraged by the discussions that are happening with the unions to address that specifically with those currently employed?
"
Joseph Waight, Financial Secretary
"You Know we have done a number of studies and the conclusions are the same that the current scheme is unsustainable going out in the future. The Pension liability for the government going forward is about 70-75% of GDP clearly we can't continue the problem is how do we make it sustainable what do we do what parameters do we change we have to bring our labour along because it is a contract we have. So it has to be a negotiation to see what can we do to put it in a sustainable footing but at the same time respecting the rights and obligation that the government has to our workers and our staff at all levels."
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