Retiring teachers voice out concerns regarding pension reforms |24 August 2022
The meeting with retiring teachers (Photos: Patrick Joubert)
A group of teachers who will soon reach retirement age this year have voiced out their concerns regarding the proposed reforms in the pension scheme.
They made known their views during an information session yesterday with representatives of the Seychelles Pension Fund (SPF) to learn more about the reforms, and the different proposals regarding their pensions.
The session was very engaging and the teachers voiced out their concerns and their worries regarding the proposal of advancing the age of retirement and also reducing their pension if they decide to retire earlier.
They were also concerned about who will benefit from their contributions when they die.
It was the Ministry of Education who had called for this meeting and it is also the first time that SPF invited a psychologist from the Ministry of Family Affairs, Jimmy Petrousse, to talk about the transition in the teachers’ lives.
Although the aim of SPF is to encourage as many people to continue to work until the age of 65, many were criticising that suggestion as they said “they have had enough and morally it was taxing for them”.
They also asked the SPF to reconsider the percentage of money that will be deducted if someone decides to take their retirement before the age of 65.
The chief executive of SPF, Nisreen Abdulmajid, and her team started the session by explaining the pension system in Seychelles, the reform in the pension scheme, the benefits currently available and the changes that will happen.
The queries from the participants were proof that the reform in the pension fund has not been well grasped by all and more campaigns are required.
Does this mean SPF has not done enough in the education campaign? Ms Abdulmajid explained that SPF is continuously holding information sessions with different groups and the group of teachers is one among them.
“But this law has to still go through the National Assembly and in the meantime, we are doing this session with those approaching retirement age. SPF already presented all the changes that will take place in its report and cabinet has already approved it. We are now doing the draft to present to the National Assembly,” stated Ms Abdulmajid.
She also shared that in most of the meetings people are voicing out against extending the retirement age. “Everywhere in the world when it comes to retirement age and pension, it becomes a controversial subject. When we also changed the amount of contribution, people were also against it as it touches their disposable income. But these are decisions that we need to take or else we will suffer from its repercussions.”
Many people also voiced out about the investments made by SPF, whether they are profitable or not. Ms Abdulmajid explained that investments have always been crucial for SPF. “When we started SPF in 2006, we had R500 in our funds and today we have R3.5 billion. Last year we did quite well, but we also had some setbacks with Covid due to restrictions. But going forward we will be doing well as we worked in close collaboration with the World Bank for a new investment plan.”
The session was rather informative for most of the participants and SPF noted that already 50% of the people that were on the list of retirement have come forward to apply and they predict that before the end of the year there will be an influx of people coming to make their applications.
Vidya Gappy