wide range of justifications
have been offered as to why the government has not paid pensions to Dr. Kennedy
Simmonds and other ministers in the previous government. In an interview with
The Observer, Prime Minister Dr. Denzil Douglas said, "pensions would be
paid. We indicated earlier that the pensions would be paid and we had set about
making the necessary calculations. "When payments will begin is less clear."When will be determined by how quickly we can get the actuarial study done," he declared, adding, "we have been advised by our legal and financial experts" to conduct such a "study and see if the country woul d be able to pay these pensions over the long run." Douglas expects the company that performs actuarial studies for Social Security to carry out this investigatio n late this year or early next year. Why payments cannot begin before the actuarial study is undertaken is not clear.
In terms of time, Douglas explained, "I don' t think we will go beyond two years, but even if it went beyond two years, a precedent would not have been set because in 1980 and 1984 some ministers of the form er Labour Administration had lost political office and it was when I got into office in 1989 that I settled those pensions." Simmonds contend's that neither Fitzroy Bryant or St. John Payne "had reached the age of 50," which is necessary to receive a pension.
Increased Pension Rates
The Labour Spokesman has alleged that both salaries and pension rates were increased in an "act of greed" immediately before the 1995 elections, since PAM expected to lose the election. In fact, the Pensions (Variation) Act 1994 was passed on September 12, 1994, less than a year after the contentious 1993 election, and ove r two months before the Forum on National Unity, at which it was agreed that elections would be held within one year.
The 1994 Act significantly increased the per centages of their salaries which ministers received.
Ministers who served at least eight years went from one-quarter to one-third those ser ving at least 9 years consecutive or an aggregate of 10 years went from one-third to a half those who served at least 13 1/2 years consecutive or an aggregate of 15 years went from one-half to three-quarters and those who served at least 18 consecutive years or an aggregate of 20 years went from two-thirds to full pension .
It increased pensions for civil servants and police officers, in addition to government officials. The "increase in pensions was in keeping with developments in other parts of the region" according to Dr. Simmonds. However, the maximum pension which a civil servant can receive is two-thirds, and this is after 33 1/3 years of service, and in order to receive that rate they give up any gratuity. Many have argued that elected officials should not receive a higher rate of pension than other government employees.
Douglas charges that, "a minority government" passed the Pensions Variation Act, "without one ounce of oppositio n, but the opposition was there out on the streets...We made it very, very clear to the world that we would not accept" that government. "We took a very firm stan d to boycott Parliament...we did not recognise that the Government of the day had the moral authority, if it had any legal authority, to impo se laws on the people of the country." Simmonds, however, recalled that the Labour legislators "would come to sign in for every third sitting in order to not lose their seats...so they could receive their pay!"
Douglas said, the pensions "issue was put to the electorate [in 1995] and was debated. The people gave us a decis ive mandate that we should not pay those pensions until a procedure was followed to see if it was morally right and that the government could afford to pay those pensions. And we have come into government and we have done both."
Part of the calculating involves looking at "advances which had been made to ministers for travelling purposes" which had not been repaid, "so all those had to be factored in," Douglas contended. He also alleged that some government ministers "drew salaries from doing private work...while serving as full-time ministers of government and receiving a full salary. We have been advised that we shou ld not pay the pensions of persons who have been so involved."
Douglas told The Observer that he has been in touch with Simmonds both "on the phone and in writing" to inform him of the situation. However, Simmonds said that until he wrote to the Attorney General last month, he had not heard anything for a year. When told about the actuarial study, Simmonds responded, "it's as if every time some asks them about the pensions they have a new answer." Douglas reported that communication have also taken place with other former ministers.
Changing the Law
"If they think the law is so bad they should repeal it," Simmonds pointed out. Douglas responded that three legal experts have advised the government that they ca nnot do so. "Even if we were to pass a new act, it would not affect them. It cannot affect their pensions, it is their property, they have earned it." Douglas ack nowledged that the law could be changed for future officials.
Although not mentioned by the Prime Minister, one of the reasons stated by other supporters of the L abour government goes something like this, "Simmonds shouldn't receive a pension unless he retires from politics." There is, however, nothing in either the Premiers Pension Act of 1971 or the Pension (Variations) Act of 1994 which supports this position. The original act says "if the person to whom it is payable becomes a legislator is again appointed Premier," the "pension shall cease to be payable" during the time the person holds office.
Additionally, that l aw made no changes in salaries, which had last been raised the previous May for the first time in five years. At that time the basic salaries were raised 15%, from $57,000 to $65,520 for ministers and from $73,200 to $84,240 for the prime minister.
While many people are upset about the high pensions which the former PAM ministers will receive, the government's acknowledgement that they will be paid is important. The long delay in the beginning of the payments h as, however, caused great consternation in many corners. The start of those payments will help to put a divisive issue behind the government, and perhaps take a step toward greater co-operation for national development to benefit all the people of St. Kitts and Nevis.
The Val Morris Case
In the public debate about the payment of pensions to the former PAM government officials, reference is often made to the case of Val Morris. Labour supporters assert that since Morris has waited over 13 years, Dr. Simmonds has no right to complain about not receiving his pension.
Val Morris had served as Superintendent of Prisons for 12 years when he came to work on February 3, 1983 and was shocked by a notice transferring him to work as a music teacher. Morris had participated in several training programmes for his position, including a four month course in Prison Administration at the Prison Staff College in Wakefie ld, England. Only one other Prison Superintendent in the region had a similar level of training. Although he directed the Defence Forces Band and had been a long- time musician, Morris was self-taught and did not feel he was qualified to teach music.
Believing that his transfer was unjust, Morris appealed to the Public Service Board and refused to report to his new position. As a result, he was fired. On 7 September of that year, the Public Service Board of Appeal ruled that "the best interests of the Public Service" would be served if "Mr. Morris be allowed to retire in the public interest." This was, in essence, a rebuke of the decision to transfer him.
Morris assumed that he would then begin receiving his pension. Almost a year later, Morris was told by then Attorney General Tapley Seaton that he needed to make a formal request to the Establishment Division, which he did on 15 August 1984. Morris received no response to that letter and pursued other channels, including speaking with the Governor- General . A letter of 23 June 1989 to Prime Minister Dr. Kennedy Simmonds also went unanswered.
"He was no more qualified to run the prison than to teach music," Simmonds told The Observer. He recalled that a "band music programme" was just being introduced into the schools and that's why they called on Morris . Simmonds argued th at "Val Morris was not entitled to a pension," since he had served only nine years (one needs to serve 10 years to be eligible) in a "pensionable position." Simmonds went on to question that if Morris was due his pension, why has he yet to begin receiving it 16 months into the new government.
Morris was originally hired on a three year contract, after which he was hired into a permanent position, in which he served for nine years. Morris believes that he was tr ansferred before completing ten years in order to "keep him from reaching his pension." Morris claimed that he tried to work with the system to get his benefits a nd by the time he gave up on that, the statute of limitations for a lawsuit had expired.
Provisions for cases such as this are made by the statutory rules of the Public Service Commission, which state that when a period of contract service is "immediately followed by service in a pensionable office, such period may be taken into account" with the approval of the Governor-General." The current government is currently investigating this route to paying Morris his pension.
Morris and his family have suffered economic hardship as a result of the situation. While he is upset about the way he has been treated, he doesn't believe his situation should be used to justify not paying a pension to others. "Every case should be dealt with on its own merits," he stated.
