(CMR) Premier Alden Mclaughlin said that the cabinet is to consider a bill allowing for the withdrawal of pension funds come Tuesday April 21. He made the disclosure while speaking at the daily COVID-19 press briefing.
According to McLaughlin, the bill which his administration was proposing was one which allows eligible persons to withdraw a single lump sum from their pension account.
McLaughlin explained that the lump sum can be up to 100 percent of the commuted value or member’s balance, where the account value does not exceed $10,000.
“So in other words if your account has $5,000, $6,000, $7,000 or $9,000 you’ll be able to take all of it. So, every person who has an account will be allowed to take up to $10,000; assuming you have it in the account; we are not proposing to put money in it for you,” clarified McLaughlin.
“And up to 25% of the remaining commuted value or member’s balance which exceeds $10,000,” added McLaughlin.
McLaughlin further explained that if an individual pension account has $100,000 in it, the individual gets the first $10,000 and then 25 percent of the remaining $90,000.
The premier shared that he had been in long discussions in the caucus and with pension providers about the proposed bill, he further shared that the opposition leader had been consulted on the plan.
“This is what we’ve settled on and what we expect cabinet will approve tomorrow,” said McLaughlin.
A pension payment holiday is also to be approved and will see the 6 month payment holiday taking effect retroactively starting April 1.
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