$7.7 Million Saved: Voluntary Early Retirement
The Cabinet Office confirmed that 19 public officers will retire from the Bermuda Government today [Sept 30] as part of the voluntary early retirement programme, adding that the Government has “realised a cumulative salary savings of $7.7 million” from the programme.
The statement said, “The Cabinet Office today confirmed that 19 public officers will retire from the Bermuda Government today, September 30, 2015 as part of the voluntary early retirement programme that was reintroduced in June for eligible persons in the public service.
“The early retirement scheme applies to Government employees between ages 55 and 64 years old. Individuals must have attained the age of 55 by September 30, 2015, or must be members of the Police, Corrections or Fire Services who are entitled to receive a pension upon retirement from the public service on the grounds of age or years of service on September 30, 2015.
“The Cabinet Office introduced the voluntary early retirement scheme as a cost-saving measure in 2014 and the salary value of those departing on September 30th is $1.5 million. The Government has realised a cumulative salary savings of $7.7 million dollars from the voluntary early retirement programme.
“Cabinet Secretary and Head of the Civil Service Dr. Derrick Binns thanked those retiring individuals for their service to the Government, and wished them well in their future endeavors.”
More money for the BTA gift club.
This is an interesting headline.
Will any of the retirees be replaced? Also how many years income is taken into consideration in calculating the savings and what is the impact on the pension plan for the early retirement.
I think this is good news but will be interested in knowing a little more facts.
Vote for Me,, that’s exactly what I was thinking is this 7.7 million a year (if so someone is being paid far too much)… or is it calculated over the years that employees could have still been working?
It says in the press release: “The Cabinet Office introduced the voluntary early retirement scheme as a cost-saving measure in 2014 and the salary value of those departing on September 30th is $1.5 million. The Government has realised a cumulative salary savings of $7.7 million dollars from the voluntary early retirement programme.”
So this latest round of 19 people taking early retirement will save $1.5 million (average salary of approx. $79,000) and with all those who have taken early retirement since 2014 $7.7 million has been saved.
The interesting question is, if these people don’t need to be replaced (which is a condition of those applying for early retirement being accepted) then why did they need to be employed in the civil service in the first place? I.E. there should be no change in Government services with these folks gone. Kinda makes you wonder how many more millions could be saved…
Bingo!
Thanks for the clarification – your rationale appears to be sound. The release should indicate the total number of people who have taken early retirement, to match against the cumulative $7.7m savings.
Your greater point is interesting. If they do not have to be replaced, what were they doing in the first place. The reality is that they chose to retire. It is therefore unlikely that government is being strategic in deciding who should retire to get greater efficiency?
Lots and lots could be saved… But if you remember the OBA promised NOT to shrink the public service by redundancies etc and rather allow natural attrition and early retirement. Draw your own conclusions….
lets see serious moves to save money
While 280 thousand is spent on hanbury. I guess that is what they want.
WILL PEOPLE JUST SHUT UP ABOUT BILL HANBURY AND MOVE ON
NO, we will flog this Hanbury scam for what it is.
A dead horse
You carry on and on about Hanbury probably because he is an expat but you conveniently overlook the fact that the CEO of the Bermuda Monetary Authority is a Bermudian who gets a base salary of $500,000 per annum plus bonus. Where do you think that money comes from?
You carry on and on about Hanbury probably because he is an expat but you conveniently overlook the fact that the CEO of the Bermuda Monetary Authority is a Bermudian who gets a base salary of $500,000 per annum plus bonus. Where do you think that money comes from?
Why should people shut up about Hanbury, it is daylight robbery that one individual is paid so much money with no accountability. In addition how much of this money will actually be retained locally. People have a right to speak up about his exorbitant pay package in light of government cost cuts. Talking of shutting up…why don’t you?
Thank you. Tourism numbers decline and he still gets paid big bucks with a bonus.
That is something every local should be speaking up about.
Bill Hanbury played a vital role in getting the Americas Cup here. In my eyes his salary is justified for the next five years just based on that accomplishment.
Instead of moaning about a few hundred thousand you should be focused on the missing $800m missing from the PLP days .
Move on, nothing to see here…
He didn’t do that by himself.
If Scotland Yard couldn’t find no wrong then its a done deal, on the other hand SpongeBob spent $800 million in less then 2 years.
Mmmmm
I guess this is where we get to the ‘not illegal but unethical’ point in the argument, isn’t it?
Simple fact, how much were we, Bermuda, in debt prior to the PLP and how much were we in debt after the PLP. How did we get there?
Cricket….Cricket….
I never said he did, but they couldn’t have done it without him… Duh!
It’s called getting rid of dead wood.
People that just show up after working 40-50 years and do *****
Many of those around.
are you one of them Terry?
There is a hiring freeze on all non-essential workers at the moment, so no- they won’t be replaced, as my understanding of it goes.
7.7 Million.
Your typing too fast to figure this one out.
Have a rum and tink………………
You’re….
19, that’s all??? At this pace, Larry Burchall will prove himself correct when he states, the Bermuda government will run out of money in July 2017!!! I have now resigned myself to that fact and fully realize that it will not be until that date when the government can’t pay its commitments that we finally wake the heck up??? Borrowing more money to avoid the default situation will only downgrade us more to the point that the IB sector will be dangerously close to not being able to LEGALLY operate in BDA! Then what????
Blame the republicans for removing the safety nets from the Bermudian economy….
Please explain your latest post of nonsense?? Even I can’t figure out what you are saying or implying with that one???
George Bush 1 , Sam Donaldson .
The warnings have been given…The heeding of said warnings were ignored…passed off as conspiracy theories…I’ve said numerous times that Bermuda hasn’t bounced back because we haven’t hit bottom yet…but finally I can see the bottom coming fast…but it’s too late…A new currency system will for sure lock your shackles.
Stay tuned for the eradication of ALL debts…and ALL credits.
Y’all want equality huh?…you’re gonna be sorry you asked for that…
@keepin, totally agree, that is why I have not had one $ of debt for 8 yrs and have bought as much gold and silver as I can ever since!!! To all those that have lived in obliviance or those that throw money away on tickets to such stupid things as that insect that was brought into this island to spew his hatred, and actually applauded him??? I have no problem in saying, I have no compassion for them when all safety nets are gone.and that day is now coming real soon!!!!
If the PLP win the next election there will be massive layoffs in the Civil Service.
The OBA know that a default is inevitable, they’re just trying to limit the fallout by staying in power after the next election. This might not be possible if they actually did what everyone knows is necessary to reduce government expenditure, i.e. massively cut CS wages and/or numbers.