Staff at the University of the West Indies (UWI) Cave Hill Campus are expressing deep frustration and anxiety following a meeting regarding the management of their retirement funds.<\/p>\n
A proposal to transition the current superannuation plan from a Jamaica-based trust to a local entity has sparked fears that retirees will lose access to their hard-earned savings.<\/p>\n
At a recent meeting attended by the Barbados Workers\u2019 Union (BWU), university administration presented a plan to shift the management of the staff fund, currently held by Guardian Life in Jamaica under a superannuation scheme. However, the proposal to bring the fund under local management has met with stiff resistance, with staff describing the changes as unfair and potentially detrimental to their financial security.<\/p>\n
One long-standing staff member, who spoke on condition of anonymity, described the atmosphere at the meeting as deeply disgruntled. The primary contention lies in\u00a0a proposed change to how benefits are paid out upon retirement.<\/p>\n
Historically, staff contributing to the plan, where employees pay five per cent and the university contributes ten per cent, expected to receive a lump sum payment upon retirement, supplementing their National Insurance Scheme (NIS) pension.<\/p>\n
However, the new proposal suggests that only 25 per cent of the fund would be accessible as a lump sum. The remaining 75 per cent would be locked into an annuity, providing a monthly stipend until the retiree\u2019s death.<\/p>\n
Lump sum<\/p>\n
\u201cFor years, people retired and got their lump sum to clear mortgages or invest,\u201d the staff member explained.<\/p>\n
\u201cNow, they are saying we can only get 25 per cent up front. If I have a mortgage to clear, I can\u2019t do it. They are locking off that 75 per cent to stretch out until you are dead. As soon as you drop dead, whatever is left goes to a beneficiary. We are working for our beneficiaries but we can\u2019t spend our own money while we are alive.\u201d<\/p>\n
The staff member noted that this structure contradicted the\u00a0expectations of longserving employees who argue that the arrangement on their payslips is a \u201csuperannuation\u201d plan \u2013 not a pension plan \u2013 and should therefore be treated differently regarding tax and payout structures.<\/p>\n
Further concerns were raised regarding the contracting of a consultant who was announced as the individual to assist with the fund\u2019s management. Staff questioned why this appointment was made prior to the consultation meeting.<\/p>\n
\u201cQuestions were asked about why she was already contracted without us meeting to agree,\u201d the source said.<\/p>\n
\u201cStaff are asking, if you are starting a new pension scheme, why not give us, the 300-plus members, our money now and let us start fresh? Why lock away what we have already earned?\u201d<\/p>\n
Tensions are also running high regarding delays in payouts for recent retirees. There is a blame game developing between the university administration and Guardian Life, with staff alleging that funds are being delayed, causing financial strain for those who have retired.<\/p>\n
Chulang Searles, a representative\u00a0speaking on behalf of the staff and union interests, acknowledged the unrest but emphasised that the process was in its early stages. He clarified that the meeting was the first step in a long consultation process to address issues that had plagued the fund for nearly a decade.<\/p>\n
Ongoing concern<\/p>\n
\u201cThere is an ongoing concern pertaining to the fund that the university and staff set up together,\u201d Searles said. \u201cWe are in the process of discussing the problems. We are not pleased at the present state and we are working on a solution.\u201d<\/p>\n
Searles noted that the current fund was set up through the UWI Centre and had\u00a0faced administrative challenges. He assured that the recent meeting was merely the \u201cfirst of many\u201d for the year and that no final decisions had been made without staff input.<\/p>\n
\u201cAs a group of staff members, members of the union, and the university, a decision will be made that is best going forward for present and future staff,\u201d Searles\u00a0said. \u201cWe heard the conditions, and we are taking the necessary steps to find a suitable and satisfactory solution.\u201d<\/p>\n
This newspaper understands that some staff are threatening legal action while demanding a full payout of their current contributions before any new system is implemented. (MB)<\/p>\n","protected":false},"excerpt":{"rendered":"Staff at the University of the West Indies (UWI) Cave Hill Campus are expressing deep frustration and anxiety…\n","protected":false},"author":2,"featured_media":494943,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,3,147,530,29586],"class_list":{"0":"post-494942","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-news","10":"tag-personal-finance","11":"tag-personalfinance","12":"tag-retirement-fund"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/494942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=494942"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/494942\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/494943"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=494942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=494942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=494942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}