Guyana Water Inc (GWI) employees have expressed concern over the continued mandatory monthly deduction of five per cent of their salaries towards a pension plan which an insurance provider ceased managing but which the company is yet to inform them about.
However, the utility company’s management yesterday assured that the employees’ monies are safe and are being held by the Human Resources Department of GWI, until a resolution on the way forward is had.
GWI has around 1,100 employees and 90 per cent of those are on the mandatory plan, the company informed.
“In 2015, they change up the thing and said we have to pay to this mandatory pension plan with Assuria [Insurance Company]. A whole 5 per cent of all your money [monthly salary] comes out. They take out up to this month, watch here. Lo and behold, Assuria say them don’t have no plan with GWI and they tell them since 2020…,” an employee lamented to Stabroek News while pointing to their pay slip.
“The company isn’t telling us anything. When you ask accounts, they say don’t ask them, ask management. Who in management? We finding out and it seems like nobody could tell we about we money,” another added.
Similar sentiments were expressed by other employees who noted that it was frustrating not having the company formally notify them of what is to become of their deductions.
GWI stated yesterday that while Assuria has indeed withdrawn as its pension fund insurance provider, all the monies received have been returned and the utility is holding that money in an account until it determines if it will continue to do so, or hire another insurance provider.
“In the interim, the HR department of GWI is managing the fund. There is no concern with respect to the money. It is in a GWI account,” Human Resources Manager Elvis Jordan told Stabroek News yesterday in an interview at GWI’s Sophia office.
Jordan said that the company has not yet told the employees about the insurance company not managing the fund anymore because GWI doesn’t see it as an issue, given that the money isn’t lost and is perplexed as to why the employees would complain to the press instead of management.
“We had the pension plan with Assuria and in September of 2020, they would have written us saying they would no longer be managing the plan from the 31st of December 2023. This was done through the Bank of Guyana; the Director of Insurance, and they would have given us guidance as to how we move forward. To date what would have happened is the pension plan still exists,” he explained.
“We had to do a number of things mandated by the Bank of Guyana, one of which is we had to get a new Trust Deed which we would have done. We have already appointed the Trustee but a critical part of this transition is a complete audit of the pension plan from 2015 up to 2023. That is being done. We would have received statements up to December 2021. Shortly we would have the statement for 2022 and 2023. The audit must be completed. The Trust Deed must be completed before we move forward. Based on the Trustee decision, [we will decide] whether we advertise for a new management of the plan or how we move forward here,” he added.
Stabroek News yesterday reached out to Governor and Commissioner of Insurance of the Bank of Guyana, Gobind Ganga, who is currently overseas on work duty. He said that he was not aware of the GWI issue but would inquire and update, soonest.
GWI’s Human Resource Head said that persons who left the company before the mandatory 10-year period matures next year, have all been refunded the sums they contributed.
And with only two months until the 10-year pension plan is activated, GWI says that it has an interim system in place but is hoping that a definitive decision will be had soon, as its audit and other requirements are met.
“We have paid persons who resigned or left the company their refund. The scheme has not matured as yet for anyone reaching a 10-year minimum to qualify for a pension, so we haven’t gotten to that stage as yet. We do have in place a system, having sat with Assuria, understanding the process, and we are managing the fund. That is where it is right now,” Jordan said.
Asked why the company has not seen it fit to formally notify the employees on the status of the monies they have invested over the nine-year period, Jordan said that management doesn’t see it fit because there is no problem.
“We had not thought of that because we didn’t see it as a concern… because we knew what was happening. It is not a case where there was any problem with the scheme,” he contended.
He said he raised the issue with CEO Shaik Baksh and he [the CEO] was concerned as to “why it is the employees is approaching the media and why not management”.
“We have had a few employees coming to us and asking the same question and we provided answers. Whatever we are doing is guided by the Director of Insurance through the Bank of Guyana. They have given us a 10-point plan of how to transition. It is not a simple matter,” he explained.
“We had to open a new account, get a new trust deed, and we have to complete the audit which is the last thing to be completed,” he added.
It is unclear if the funds are in an interest bearing account or have been invested.
