New pension scheme proposed |01 July 2004

The move to revise the scheme is in line with the June 18 announcement by President James A. Michel, who said that a new scheme will be set up after a series of consultations with all stakeholders.

The managing director of the Seychelles Pension Scheme, Mr Willy Confait, noted this week that one of the aims of the proposed scheme is to ensure that every Seychellois, including the self-employed, benefit from it.

Among the attractions of the proposed scheme is the provision for its members to be able to get up to 50 percent of their voluntary contribution in case of natural disasters or serious illness within their families.
"We are also proposing that the members be able to get 50 percent of their voluntary contribution every five years to meet periodic need for cash or to attend to personal and domestic matters," he said.

He told Nation that his office often receives requests from members in need of money, but noted that it is not possible to get such money from the members normal savings.
"The reform entails revamping of the scheme which has been in operation since January 1991 as a complimentary scheme to the Social Security Fund in order to introduce a new pension programme for all employees in the formal employment and also the self employed workers.
"Basically the aim of the programme is to ensure that all employees enjoy from the scheme a retirement pension as an earning replacement to enable them to live in basic comfort," he said.

Mr Confait said that at the moment, what members get on average amounts to just about R14,000, which might last them only a few months, so another aim of the proposed scheme is to encourage saving so that the eventual amount paid to them is more substantial.

"The present voluntary contribution scheme should continue and members will be encouraged to make contributions or increase them in order to provide for a lump sum payment on retirement to clear debts or prepare members for the world of retirement or (assist) the spouse or dependants in case of death before retirement," he said.

He said stakeholders will also be asked to consider such other benefits as early retirement on attaining the age of 55 after 20 years of service or on grounds of ill health," he said.
"The scheme being considered is aimed at ensuring that each individual faces less uncertainty during his or her working life, knowing that his or her pension is a secure and decent retiring income," he said.
He said the Seychelles Pension Scheme will welcome and appreciate any comments, suggestions or changes that employers and employees or their representatives would like to make in order to finalise the pension programme.