Based on a report, the Petrotrin employees’ pension plan shows a possible deficit in 25 years for scenarios that were simulated but employees won’t be affected since Government will take whatever action is necessary, Finance Minister Colm Imbert said.
He gave the information in the Senate yesterday replying to Opposition questions on the aftermath of Petrotrin’s closure. Imbert was asked to state the findings of the latest actuarial report or the findings of the Fund Manager on the Pension Fund for ex-Petrotrin staff
He said Petrotrin has two pension plans—the Petrotrin Employees’ Pension Plan (PEPP) and the Staff Pension Plan (SPP).
“The last actuarial reports were prepared for the three years ending in September 2016, and are thus out of date,” he said.
“In or around November 2019, a report was produced for simulation purposes which sought to address the long-term impact of Petrotrin’s restructuring on the two plans. Based on the simulation report, the Staff Pension Plan has adequate resources to meet all of its obligations whereas the Employees’ Pension Plan shows a possible deficit in 25 years for the scenarios that were simulated.”
Imbert said Petrotrin has advised that actuarial valuations for the three years ending in September 2019 are currently in progress and will provide more accurate information on the funding status of both plans.
“These reports should be completed by June. In addition, the Finance Ministry has commissioned an independent actuary to conduct an independent valuation of the plans and their ability to meet their liabilities to provide the best possible information for decision-making purposes. This valuation should also be completed by June 2020.”