MLA Edwards decries ‘woeful shortfalls’ in Pension Scheme

Written for the February 26, 2021, issue of Penguin News.

THE Falkland Islands Pension Scheme (FIPS) had “woeful shortfalls” declared MLA Roger Edwards when the scheme was raised in Thursday’s meeting of the Legislative Assembly on February 25.

MLA Leona Roberts asked for an update on a timeframe for completion of work which would allow a bulk, cash drawdown of Trivial Pensions, as this had been asked about in 2018 and MLA Roger Spink replied at the time the work would be completed by December 2018 for inclusion in the Finance Bill 2019.

MLA Roger Spink explained to the House that the work, which he recognised as, “eagerly awaited by many members of our community,” was delayed due to the fact that while, “initial actuarial work” had been completed, wider work required for implementation was, “not progressed prior to 2020 due to other priorities for the then Financial Secretary.” He stated the Covid-19 pandemic caused further delay.

MLA Spink said policy work was being undertaken and “policy documentation would be ready to go to ExCo for approval in June this year, with legislation following. MLA Spink stated MLA priorities would dictate whether the legislative programme could accommodate the work for January 2022, but he was confident it could be done for January 2023.

To this MLA Roberts noted, “this news will be extremely disappointing and frustrating for those individuals who have been waiting to draw down their trivial pensions, many of whom will have had hope of investing that lump sum.”

A member of the public who previously worked within Pensions submitted a document to government with some 41 concerns and queries on the FIPS, aiming for changes to be made alongside ongoing policy work. MLA Roger Edwards speaking of the document said: “there is some woeful shortfalls in the scheme as is, and it does need some considerable amount of work done” and stated that he had met with government officers to go through the 41 points, and other “concerns”.

MLA Roberts said perhaps the work could be outsourced “in an effort to bring it to quicker completion.”

MLA Roberts also raised concerns of a “small cohort” of former Government Employees who were sold a pension in 1996 after the hay-review which had since come to “bear no resemblance” to what they were initially sold due to the lack of a no-worse-off guarantee which was offered to employees aged 40 or over at the time. MLA Roberts reported that this cohort – who include “some of governments longest serving employees” - had raised this issue multiple times but had seen no changes, and were relying only on government “to do the right thing”, MLA Roberts said.

The Chief Executive responded that he was “more than happy to undergo some work to remind ourselves of the circumstances” of the group and “inform action”.

Nicholas Roberts