St. Kitts and Nevis passes Pensions Amendment Bill 2025; PM Terrance Drew calls It 'Historic Milestone'

The Government of St. Kitts and Nevis has officially passed the Pensions Amendment Bill 2025 on Wednesday, 30th April, 2025. This bill is expected to play a significant role in delivering the long-overdue justice and security to over 2,000 hardworking Government Auxiliary Employees (GAEs) across the Federation. 

Describing the moment as, ‘historic,’ the Prime Minister of St. Kitts and Nevis, Dr. Terrance Drew noted under this legislation, the GAE workers will finally be guaranteed access to pensions after their 15 years of service for the development of the nation. 

“Empowerment is not feeling pity for people. This GAE Pension Plan is about people who have worked, and they must get what they deserve,” noted PM Terrance Drew.  He described Pension Amendment Bill 2025, as one of the most transformative labour-focused pieces of legislation in the history of the nation. He added that this legislation aligns with their agenda of making St. Kitts and Nevis, a Sustainable Island State. 

PM Terrance Drew noted that the Pensions Amendment Bill is a testament to their unwavering commitment and dedication to delivering equity, stability, and justice to the workers who have long held the nation together from behind the scenes. He added that all these GAE workers have worked hard and they are now happy to be finally able to deliver to the hardworking GAE Workers. 

What does the Pension Amendment Bill 2025 states?

While presenting the Pension Amendment Bill 2025, PM Terrance Drew noted that it has been designed with a vision to keep it concise, clear and straight to the point. According to the bill, over 2000 GAEs will be benefitted directly from the new pension law, ending decades of exclusion and second-class treatment. 

The Bill also introduces a contributory pension plan, that is described to be fair, sustainable and backed by a professionally managed Pensions Fund. According to the bill, the workers will contribute 3% of their salaries and after 15 years of service, they will qualify for a full government pension, a gratuity that is available after a period of 10 years. 

The retirees can also receive up to 100% of their income, ensuring they do not retire into poverty. The workers who resign early will receive a full refund of their contributions with interest, if medically unfit or deceased, early pension access and survivor benefits apply in that scenario. According to the Bill, the Retirement age standardized at 62, aligns pension access with Social Security eligibility for consistency and predictability. 

Emphasising on the legislation, PM Drew noted that it also corrects the injustices made under the previous government, which had slashed gratuity payments to GAE workers. The Bill also includes a ‘no one loses’ clause under which the old system will retain earned benefits and time served. 

The Government has also established a separate Pension Fund, with annual adults and actuarial reviews every three years, aimed at safeguarding its long-term viability.