Playing politics with pensions

THE EDITOR: The talk in the newspapers about Pension Fund surplus and the idiotic statements made by a Senator in the opposition have created much ado and make no sense.

Pension Fund surplus is mainly created by two things. 1) Interest earned on investments over and above the actuarial forecast calculations. 2) The attrition created by contributors no longer employed and the companies contributions being left in the scheme, after the departing employee has taken a refund of theirs, providing they have been a member for less than five years. After being a member for more than five years, the employee needs to obtain the approval of the Board of Inland Revenue to get a refund. The surplus is the excess of funds over the forecast commitments of the scheme. These funds do not necessarily nor automatically belong to the existing members of the scheme nor are they entitled to claim them in any way. Pension benefits are clearly stated, the carrier can usually calculate fairly accurately the Pension entitlement on retirement of a member. The trustees of any scheme can enhance the benefits of the scheme using this surplus if they believe it is in the best interest of the members. So please, Senator, get the facts before you speak and stop trying to play politics with something as important as this.

DAVID L MARTIN
Maraval