By S.Browne. Updated 2:05 p.m., Wednesday, July 22, 2026, Atlantic Standard Time (GMT-4).
Parliament has passed the Pensions (Amendment) Bill, 2026, allowing non-pensionable public officers to remain in government service until age 65 without having to seek annual approval for extensions, with Prime Minister Dr Godwin Friday saying the change sends a message to affected workers that “we see you” and “we hear you”.
The amendment, which was approved during the Tuesday, July 21, 2026 sitting of the House of Assembly, maintains the option for non-pensionable officers to retire voluntarily from age 60, while removing the uncertainty created by the previous system of yearly extension requests.
Dr Friday said the legislation addresses an inequity that developed after changes to the National Insurance Services (NIS) gradually increased the age at which contributors qualify for a full pension.
He explained that the qualifying age, which was previously 60, has been increasing in stages since 2016 and is scheduled to reach 65 from 2028. As a result, some non-pensionable public officers who were required to retire at 60 found themselves facing a gap between leaving the public service and becoming eligible for their full NIS pension.
The Prime Minister noted that the NIS pension age moved to 61 between 2016 and 2018, 62 between 2019 and 2021, 63 between 2022 and 2024, and 64 between 2025 and 2027 before reaching 65 from 2028.
He explained that while persons can choose to claim their NIS pension before reaching the qualifying age, doing so results in a reduction of approximately eight per cent for each year taken early.
“As the pensionable age moves further away from the retirement age, that penalty becomes progressively more difficult, more painful, more onerous for the pensioner because now they must choose,” Dr Friday said.
He said many non-pensionable workers had been forced to apply annually for permission to remain in service beyond age 60, creating uncertainty over their continued employment.
“This really is an unconscionable position to put those employees in because, as I said earlier, they were working, expecting that when they retire they will have a little thing, the NIS pension,” the Prime Minister said.
Dr Friday said the amendment removes that uncertainty by allowing eligible non-pensionable workers to continue working until age 65 if they choose.
“We said, OK, let’s not treat this as an ad hoc thing because people are being affected pretty much every day, every month somebody retires,” he said. “Let’s put it in legislation so that people know that they have a right now to retire at age 65 if they choose to.”
The Prime Minister stressed that the amendment does not force anyone to work until age 65, but instead provides workers with an additional option.
“They can still choose to go early,” he said, noting that some employees may decide to retire before 65 depending on their individual circumstances.
Dr Friday said the legislation was about correcting what he described as an unfair situation affecting lower-paid, non-pensionable public servants.
“It’s more than codifying, though. It’s sending the message out there that we see you, no matter that you are at the lower end of the public service. We hear you, no matter that your voice is usually the least of the voices in the service,” he said.
“And we will respond to your circumstances in a way that is just and fair.”
Minister of Tourism, Civil Aviation and Sustainable Development Dr Kishore Shallow supported the amendment, describing it as “practical and equitable”.
Shallow said many non-pensionable public workers rely mainly on NIS benefits for retirement security, unlike pensionable officers who receive government pensions.
“Consequently, many non-pensionable officers who are compulsorily retired at the age of 60 find themselves in a predicament… where they leave the public service before they become eligible to receive their full NIS pension,” he said.
He said the amendment would remove that gap by allowing workers to remain employed until they become eligible for full NIS benefits.
“Importantly to note also… that this bill does not compel anyone to work until age 65. It retains the flexibility,” Shallow said.
Opposition Leader Ralph Gonsalves also supported the legislation, describing the change as part of a wider global trend linked to longer life expectancy and changing demographics.
“This reflects a larger demographic issue. We’re living longer, and we’re working in older years,” Gonsalves said.
He noted that St Vincent and the Grenadines, like many countries, is experiencing population ageing and declining fertility rates, factors that influence retirement and social security policies.
“The fastest growing segment of the population is the population over 60,” he said.
Gonsalves also called for broader discussions on public sector pension reform, while noting that existing pension rights of public servants are protected by the Constitution.
Deputy Prime Minister and Minister of National Security St. Clair Leacock, who introduced the bill, said the amendment followed recommendations from a Select Committee and includes transitional provisions for officers already in service.
He said the bill changes the law to allow a non-pensionable officer to retire voluntarily from age 60, while also allowing compulsory retirement at age 65.
Leacock also raised concerns about other groups of non-pensionable workers, including auxiliary police officers, who he said perform important duties but are not covered under existing pension arrangements.
He said auxiliary police officers are increasingly involved in specialised and high-risk areas, including the Coast Guard and Special Services Unit, and suggested that future legislative changes may be needed to address their retirement arrangements.
The Pensions (Amendment) Bill, 2026 was read a third time and passed by the House of Assembly.
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