Senior economist Roger Hosein has welcomed the Government's plan to increase the compulsory retirement age from 60 to 65.
In his contribution to the budget debate in the Senate on Friday, Attorney General Reginald Armour, SC, promised to bring a bill during this parliamentary year to effect the change.
He said the proposed Senior Citizens Pensions (Amendment) Bill is intended to "update and modernise the senior citizens pension scheme and to complement the proposed increase in the age of retirement from 60 to 65 giving our very knowledgeable and experienced senior citizens the opportunity to continue to contribute to our society."
The plan to increase the retirement age has been on the drawing board for some time, largely in light of repeated auditor's reports from the National Insurance Board which pointed to a shrinking pool of contributions alongside more claimants.
Minister in the Ministry of Finance Brian Manning, in advancing the Government's position, met within the past few months with representatives of various chambers of commerce and several trade unions, including the Public Services Association, Banking, Insurance and General Workers' Union, National Union of Government and Federated Workers' Union, Prisons Officers' Association and the Fire Services Association.
After Manning's meeting with BIGWU, the union called for widespread consultation.
In a release dated May 12, the union said, "Any proposed extension if the nation's retirement age in Trinidad and Tobago from 60 to 65 must be subject to wide consultation with the trade union federation and other stakeholders before any attempt to implement by Government."
The union urged the minister and the NIB to ensure that the widest possible consultation is held on this "sensitive matter." It further advised that many of its members were opposed to the arrangement, which would see a change in the access to full national insurance benefits at the customary retirement age of 60. The union said the proposal would see a reduction in NIS benefits to people under 65. It added citizens needed to be made aware of the implications of the move "as it would create a further financial burden on the citizenry."
But speaking to Sunday Newsday, Hosein hailed the proposed plan as a step in the right direction. "I am of the view that an increase in the retirement age from 60 to 65 is a welcomed development for Trinidad and Tobago as we navigate the next 50 years of our economic development," he said.
In the first instance, Hosein said the country's labour force participation rate has been on the decline since 2004. "In fact, the labour force participation rate has moved from 63.4 per cent in 2004 down to 54 per cent. That is a significant decrease."
[caption id="attachment_980737" align="alignnone" width="1024"] Brian Manning, Minister in the Ministry of Finance, centre, with Leo Ramkissoon, second from left, president of the TT Fire Services Association and other officials after a meeting on a compulsory retirement age of 65 at the Finance Ministry i
