GOVERNMENT OF GRENADA
THE GRENADA TECHNICAL AND ALLIED WORKERS’ UNION
GRENADA UNION OF TEACHERS
ROYAL GRENADA POLICE FORCE GAZETTED
ROYAL GRENADA POLICE FORCE WELFARE
HER MAJESTY’S PRISON
ON THE RESTORATION AND REFORM OF PENSION FOR
PUBLIC OFFICERS OF THE GRENADA PUBLIC SERVICE AND
MEMBERS OF THE DISCIPLINED FORCES OF GRENADA
This Agreement is made this 18th day of February 2018, BETWEEN THE GOVERNMENT OF GRENADA of the one part and THE PUBLIC SECTOR UNIONS AND STAFF ASSOCIATIONS ofthe other part (hereinafter referred to as “the Parties”).
This Memorandum of Understanding outlines the guiding principles which shall govern the restoration and reform of Pension to Public Officers of the Grenada Public Service and Members of the Disciplined Forces of Grenada.
The Parties agree to restoration and a phased approach to reform for qualifying officers/employees. Below details the respective phases and describes the categories of officers/employees to be covered as well as the associated guiding principles for each phase.
PHASE ONE (1)
The category of officers covered under this phase are Public Officers and Members of the Disciplined Forces who have been/are appointed on a definitive basis to Established posts by the Public Service Commission (PSC), the Judicial and Legal Services Commission (JLSC) or the Commissioner of Police from and including April 4, 1983 to December 31, 2018 and who meet the criteria established through this process.
PHASE ONE (1) – PRINCIPLES
The guiding principles for this phase are as follows:
1. Pension shall be afforded to all eligible officers who have been appointed on a definitive basis (Permanent) by the Public Service Commission (PSC), the Judicial and Legal Services Commission (JLSC) or the Commissioner of Police as the case may be from and including 4th April 83.
2. Pensionable Benefits (Pension and Gratuity) for Public Officers and Members of the Disciplined Forces mentioned above shall comprise both Government of Grenada and National Insurance Scheme Benefits.
3· All years of qualifying service up to the last date of employment shall count towards an officer’s pensionable benefits.
4. The minimum Pension Replacement Rate for eligible Officers including all Members of the Disciplined Forces, after completing 26.666 years of service shall be 70%. For service under 26.666 years, pensionable benefits for eligible officers shall be applied on a prorated basis.
On the determination of the overall cost, the Parties agree to negotiate a payment arrangement for the retroactive amount that is based on affordability. The agreement reached shall be catered for in the annual targeted expenditure and based on cash flow. Where the Government foresees a challenge to meet the annual payment, the Parties will meet during the budget consultative process to revise the targeted amount.
It is further agreed that the Parties will explore varying options to reach a mutual settlement with respect to the retroactive cost.
In addition, given that all years of qualifying service worked with the Government of Grenada shall be counted in the calculation of pension, any rate above the minimum Pension Replacement Rate (70%) shall be subject to Government’s ability to meet this additional expenditure.
5. All Parties agree to negotiate and collaborate for the operationalization of the Pension Scheme to be developed, consulted upon and approved by June 30, 2018.
6. The implementation date of the Pension Scheme shall be subject to discussions with the Unions and Associations.
7. The implementation of Phase One (1) shall not be dependent on the finalization/ settlement of Phase Two (2).
PHASE TWO (2)
This phase covers two categories of Public Officers/employees and Members of the Disciplined Forces as detailed below:
1. Public Officers and Members of the Disciplined Forces who will commence employment with Government with effect from January 1,2019.
2. Employees under the Un- Established category.
PHASE 1WO (2) – PRINCIPLES
1. The Parties commit to the design of a contributory Pension Scheme for qualifying Public Officers and Members of the Disciplined Forces in Established posts who will commence employment from January 1, 2019.
The details of which would have to be developed and mutually agreed upon by both Parties.
2. As it pertains to employees under the Un-Established category, both Parties agree to review the existing regime/s as applicable and to design a scheme that will afford terminal benefits to these officers and employees.
3. The Parties also agree to give focused attention to these categories of officers and employees.
4. The start date of the new Schemes shall be based on the availability of finances to fund the scheme and will be subject to discussions with the Unions and Associations.
AS WITNESS the hands of the Parties hereafter or their duly authorized agents the day and year first written.
AGREED AND SIGNED TO THIS 18th DAY OF FEBRUARY IN THE YEAR TWO THOUSAND AND EIGHTEEN.
SIGNED FORAND ON BEHALF OF THE GOVERNMENT OF GRENADA
Secretary to the Cabinet/ Chairman
Government Pension Engagement Committee
Department of Public Administration/ Member
Government Pension Engagement Committee
SIGNED FOR AND ON BEHALF OF THE PUBLIC SECTOR UNIONS AND ASSOCIATIONS
SEN. THE HON. M. ANDRE LEWIS
Grenada Technical and Allied Workers Union
Grenada Union of Teachers
JESSMON PRINCE ACP
Royal Grenada Police Force Gazetted
M. SIMON DOUGLAS
Royal Grenada Police Force Welfare Association
Her Majesty’s Prisons Officers Welfare Association
CYRUS GRIFFITH LABOUR COMMISSIONER