Minister of Finance, Karen Tesheira, right, signs a pension agreement on behalf of her Ministry, watched by Caroni (1975) chairman, Jerry Hospedales, left, and attorney Dennis Gurley. PHOTO: KARLA RAM00
The Finance Ministry and Caroni 1975 Ltd yesterday signed legal documents to ensure the payment of pension benefits to over 9,000 ex-workers of Caroni (1975). The benefits were promised to daily-paid ex-workers six years ago, as part of their Voluntary Separation of Employment Package (VSEP) and to certain monthly-paid workers. It was also part of the Consent Order issued by the Industrial Court in July 2003.
The Finance Ministry and Caroni 1975 Ltd yesterday signed legal documents to ensure the payment of pension benefits to over 9,000 ex-workers of Caroni (1975). The benefits were promised to daily-paid ex-workers six years ago, as part of their Voluntary Separation of Employment Package (VSEP) and to certain monthly-paid workers. It was also part of the Consent Order issued by the Industrial Court in July 2003.
The workers were given VSEP after the closure of the company in 2003, after 30 years in operation. But according to Caroni (1975) chairman Jerry Hospedales, the process of meeting the pension commitments was long and arduous and required substantial technical and administrative work. “There were many hurdles, in particular, the need to establish a credible pension-eligible database from the unreliable and fragmented records at Caroni and to codify those institutional pension practices which prevailed,” Hospedales said.
He pointed out that on June 14, 2007, Colonial Life Insurance Company (Clico) was selected as the annuity provider through a tendering process involving five other insurance companies. He said from June 1, trustee Republic Bank Limited - Trust and Asset Management Division, would begin to purchase immediate and deferred annuities for pension-eligible daily-paid workers, from insurer Colonial Life Insurance Company. However, he noted that all payments under the annuities would have an effect from July, 2008.
He said unverifiable claims would be placed in a reserve fund, which would be held by Republic Bank for seven years, during which any legitimate claims by potential beneficiaries would be honoured. He added that over the next two weeks, information on annuity purchases would be provided to beneficiaries. This new pension agreement means that a pension-eligible former employee of Caroni who qualifies for the Senior Citizens Grant could receive $2,800 monthly—Caroni pension of $650, NIS pension of $2,000 and Senior citizens grant of $150.
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