Jackson slams Govt. over freezing of pension benefits
Louise Jackson lashed out against Government's freezing of pension benefits, saying the move was the result of reckless spending.
While Finance Minister Paula Cox said pension rises since 1998 have left seniors in good financial shape, Mrs. Jackson said seniors now need more help than ever.
Mrs. Jackson, the Shadow Minister for seniors, said: "It is my view that a compassionate government would understand the pressures people are under and be ready to be there for them when times get tough.
"This is one of those times, but this Government is not there for them."
On Friday, Ms Cox announced that Government would freeze government pension benefits this year, along with the level of contributions into the Contributory Pension Fund.
According to Mrs. Jackson, the freeze was needed because of overspending on other Government projects.
"The decision to freeze pension funds is one more indictment of the Government's handling of the public purse," she said.
"It's the end point of a school costing $60 million more than the original estimate, a Dockyard pier costing $30 million more than planned, Government ministers racking up huge travel bills, a court building costing millions of dollars more every time the minister gives a progress report and more that $100 million a year to consultants.
"The list goes on."
Responding to the comments by Mrs. Jackson, a spokesperson for the Ministry of Finance said the Contributory Pension Fund, where the money for pensions come from, is not connected to government expenditure on public programs and services.
Ms Cox yesterday defended the pension freeze, saying that over the last nine years, the increase in the pension was greater than the rise in the cost of living.
"In total, the basic pension will have been increased from $644.37 per month in 1998 to its current level of $951.73. This represents an increase of 47.7 percent, or $307.36 per month.
"During the same period, the percentage change in the prevailing rate of inflation as measured by the Bermuda Consumer Price Index was 40.3 percent.
"The benefits increases have exceeded the prevailing rate of inflation, placing seniors' pensions in good stead."
She also added that Government had put forward other programs to improve the quality of life for seniors including absolute land tax exemptions granted for seniors, a $1,000 prescription drug benefit for seniors enrolled in HIP, free vehicle licenses and Futurecare.
"This decision should in no way diminish this Government's unwavering commitment to enhance the quality of life of our senior citizens," Ms Cox said.