SIC Reconsidering Pension Programme

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Saturday, 24 March 2012 02:30

By caribarena news

Antigua St John's - The trustee committee of the State Insurance Corporation (SIC) is said to be in talks about deleting a section of its pension plan programme that allows employees the option to collect a lump sum refund of their contributions, with interest, if they are forced out of the company.

This clause was recently utilised by former SIC employee Dave Joseph, whose job was made redundant after the company employed new technology.

According to sources close to the SIC Board, the committee is strongly considering the move, but can only do so much without the input of the pension plan’s membership.

The membership was only made aware of the potential move on Thursday.

The section in question is 10.2 (c) under the "Members Who Have Vested Status" heading, which states, “In lieu of a pension, a lump sum refund of the Member’s Regular Contributions with Credited Interest to the date of his termination of employment plus half of the Corporation’s Contributions with Credited Interest to the date of his termination of employment.”

SIC employees have this option only if they are fired from the job or leave under circumstances other than retirement or death, before their normal retirement date. The staff must have also completed 10 or more years of continuous employment with SIC.

Meanwhile, Joseph, shop steward of the Antigua Trades and Labour Union (AT&LU) remains in contention with the corporation regarding adequate severance.

He reportedly received his final payment on March 21, in keeping with the pension rules, but said the sum calculated was “inaccurate”. Chairman of the State Insurance Corporation (SIC) Pedro Corbin and Vaughn Warner signed the cheque.

Joseph said, “I am of the opinion that the figure is incorrectly calculated, but that matter will be dealt with by my lawyer."

Attempts to reach Corbin for a comment were unsuccessful.

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