RHAs pension fund stands at healthy $135M

The Health Ministry yesterday said the market value of the Regional Health Authorities contributory Pension Fund Plan was just over $135 million for the last quarter ending June 30. This amount represents monthly employer/employee contributions and seed capital paid by the government and investment income. Permanent Secretary in the Health Ministry Reynold Cooper issued a statement yesterday in response to “recent reports and letters to editors in the daily newspapers on matters related to the Regional Health Authorities.” For the period November 1999 and ending June 30 last, the plan had 2,124 members. The North West Authority (NWRHA) has 1,086; Eastern, 100; South West RHA 750 and Tobago RHA 188.

The Permanent Secretary said there were 19 pensioners in the plan, most of them were employees of the Eric Williams Medical Sciences Complex and NWRHA. “The plan’s trustee (Republic Bank) has advised the ministry that all contributions for the respective Regional Health Authorities’ Pension Fund Plan have been fully paid up to June 30 2004, including contributions from the NWRHA. The last payment made to the plan’s trustees by the NWRHA was $1,698,077.08, paid on July 28 2004.” The Permanent Secretary said the payment represented employer and employee contributions for April  to June 2004.” The RHAs are required to submit all employer and employee contributions which amount to 18.3 percent of pensionable income (employer contributing 13.3 percent and employee five percent) to Republic Bank.

“On production of evidence by the RHAs of these remittances to the plan’s trustee, the Ministry of Health reimburses the RHAs,” Cooper said. Government agreed to establish a contributory pension fund plan on October 1, 1997. The RHAs Contributory Fund Plan was formalised by Trust Deed dated September 1999, with annexed Rules, between the Chairmen of the RHAs and Republic Bank (Trust and Asset Management Division) who were selected as trustee/investment manager after an open tendering process under the aegis of the Central Tenders Board. Cooper said detailed information on the RHA’s Pension Fund Plan and Trust Deed and Rules is available at the ministry’s website www.healthsectorreform@health.gov.tt.
He hoped the information provided will dispel “any fears with respect to the integrity” of the plan.