Cabinet approves new superannuation scheme for public servants

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The 174 public servants without superannuation cover will be glad to know that they can start their contributions because Cabinet recently approved the new scheme, although information is scarce at this point about the details of the scheme.

This news was delivered by Premier Dalton Tagelagi on the News of the Week radio programme last Friday. 

Premier Tagelagi said that the new superannuation scheme has been approved by Cabinet, with the lawyers and government officials ironing out the last few details of the scheme but the public servants should be able to begin their contribution. 

The employee will contribute 5 percent and the employer 3 percent, but the employee may increase their contribution higher than 5 percent. 

According to the Premier, a special account will be set up at the Treasury Department for the superannuation contributions.

Three years ago, while looking for a new superannuation scheme, the government intended to offer for the first time superannuation to the employees of the private sector, but that is yet to be confirmed at this stage whether this new scheme will also include cover for employees of the private sector.

For now, the public servants who since 2016 were not part of any super scheme can now begin their contributions.

BCN News will update as more information comes to hand about this new superannuation scheme.

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