A bill was introduced last month to amend civil service pension plan stating that with the current rate of contributions the fund will be in negative fiduciary net position.
The OEK suggests that by 2022 at the current contribution levels the value will be negative creating a growing concern which needs addressing in order to preserve overall fiscal health of the pension plan and fund.
It has also warned that the failure to appropriate essential funds to ensure its long-term viability will lead to a greater economic uncertainty in an already economical turbulent time.
“OEK believes the government must maintain promises made to its citizens who chose the calling of public services,” read the legislative findings.
The pension plan receives regular payments made under the Pristine Paradise Environmental Fee and the OEK believes that these payments will not cover all future unfunded liabilities faced by the pension plan.
The amendments suggests an additional subsection to section 2026 of Title 33 where a sum of five million dollars is to be authorized to the civil service pension plan and fun. (Eshan Kalyanikar)