Politicians’ pensions boosted on top of Greedy
Politicians’ pensions boosted on top of Greedy
The Auditor General (AG) has warned that the massive salary increases legislators quietly approved for themselves last year is sure to give their pensions another boost on top of increases that were already granted under the Retiring Allowances (Legislative Services) (Amendment) Act, 2021 — widely referred to as the “Greedy Bill.” Under the Greedy Bill, higher salaries and emoluments lead to larger post-term payouts.
The act sparked public outrage when it was passed because of these stipulations. Now, the AG has cautioned that this latest round of salary hikes will likely push those pensions even higher, compounding the long-term cost to taxpayers. “The potential impact of these new salaries on retirement benefits and pensions under amended legislation for HOA members has not been discussed or addressed,” the report, tabled in the House of Assembly on September 16, said.
Auditor General Sonia Webster’s new report revealed that while the House of Assembly members were presented with the consultant’s recommendation to increase their salaries to a minimum range — estimated to cost $465,657, legislators instead voted in an informal meeting to adopt the maximum range.
That decision more than doubled their existing pay and required an additional $809,652 in the 2024 budget. The increases took effect January 1, 2024. The AG also noted that legislators sent a memorandum, telling the Deputy Governor’s Office and the Financial Secretary about their decision to adopt the maximum salary range.
However, they made no mention of the effect this would have on their already enhanced pensions. “Other important implications with respect to the recently increased pension benefits for HOA members in 2021 were not addressed in the Acting Clerk’s memorandum,” Webster wrote. Webster said the salary raises and their resulting pension implications were implemented “without any form of public disclosure,” raising concerns about transparency and accountability.
Salary increases for the wider public service References salary adjustments to the wider public services, the AG’s report further revealed that while the public was told those would cost $9.4 million, the Ministry of Finance had internally estimated the real cost could exceed $27 million.
That higher estimate was not presented to Cabinet or the HOA before the budget was approved. Webster recommended that the government disclose the full cost of the salary increases, including the pension implications, and explain why legislators were not informed of the potentially higher costs before approving the pay hikes.
The new AG report has already reignited public anger, with many residents voicing concerns that elected officials are prioritising their own financial security over the country’s strained finances. Some social media commenters have called for greater transparency and even suggested that the salary and pension increases be rolled back.
Primary source: BVI News