By Ariana Gordon

THE age of retirement in the Public Service should be increased from 55 to between 60 and 65 years of age, the report into the state of the Public Service recommends.Most public servants retire at age 55, with the exception of workers of the Bank of Guyana (BoG), the National Insurance Scheme (NIS), the Guyana Revenue Authority (GRA) and the Audit Office of Guyana. Those workers retire at age 60.
Over the years, it has been argued that the current age of retirement for Public Servants is too early and testimonies received by the Commission of Inquiry (CoI) revealed that there is need for a higher retirement age for Public Service staff.
“The contention is that at age 55, public servants would have acquired deep knowledge and wide experience in public management and in their professional and specialist fields,” the report stated.
As such, it is felt that there would be a “great loss of skills and expertise” to the Public Service given the current age of retirement; an argument used to justify the re-employment of retired public servants on contract immediately on retirement.
“A survey of Human Resource Practitioners in the private sector recommends a retirement age of between 60 and 65 years. This is also in line with testimony to the commission by public servants and private individuals. The advocacy is for a retirement age of 65, with an option of retirement at 60 in the Public Service to provide for the retention of valuable, experienced and skilled professionals.”
According to the report, the higher retirement age of 65 would provide for higher pensions under the Pension Act, as public servants would continue to contribute to the NIS until age 60 when the NIS pensions are paid.
The NIS financial scheme would be increased due to extended contributions from the employer and the employees for an additional period of five years.
“We are convinced that a higher retirement age for public servants would be mutually beneficial to the state, the public employees and the NIS,” the report added.
Based on the aforementioned, it was recommended that the retirement age for new entrants into the public service and those currently in the public service who are below 50 years of age, be retired on attaining 65 years of age, with the option of retiring on attaining 60 years.
It was also recommended that pension entitlements be calculated at a maximum of 43 and one third service years; that public servants who are currently below 55 years of age, be allowed the option to retire on attaining 60 years or anytime before 65, or on attaining 65 years of age; that no person retiring from the private sector before attaining the age of 65 years should be employed on contract in an established private sector position.
Additionally, it was also recommended that the Pension Act Chapter 27:02 be amended to provide for higher pensions as a result of the higher age of retirement. Currently, there are 2554 pensioners receiving the minimum pension out of 8,580 pensions.
As such, the Commission believes that consideration ought to be given to increasing the monthly pensions of retired public officers who are in receipt of the minimum pension level to a level that is equal to, or closer to the Public Service minimum wage or salary.
The CoI report, which was handed over to President David Granger one week ago and presented to the Speaker of the National Assembly, Dr Barton Scotland, and Leader of the Opposition, Bharrat Jagdeo, was put together by Professor Lutchman, and Commissioners Sandra Jones and Samuel Goolsarran.