All the Linmine workers as at July 31 were made redundant and received termination benefits which included six weeks pay for every year of service up to 104 weeks and a training grant equivalent to 10 per cent of the termination pay. Both payments are tax-free. During their employment they contributed 4 per cent of their pay and Linmine paid 11 per cent.

With the pension plan frozen at July 31, the retrenched workers are clamouring to be paid the contributions made on their behalf. The provisions of the plan do not provide for such payments being made. The plan covers not only the Linmine workers but also those at Bermine, and Bidco and the plan has an estimated 4,000 members including the existing pensioners.

At 2001, according to actuarial estimates, the value of the plan was about $2.6 billion. Since then Stabroek News understands that the government has paid over the outstanding contributions owed by Linmine and Bermine. It has no estimate of these payments.

Prime Minister Samuel Hinds told Stabroek News that the legal opinion at the moment is that the lump sum payments cannot be made as the recipients could legally return at their retirement age and ask to be paid a pension

He said that if the provisions could be changed then there would have to be an intensive education programme to inform the members of the pension plan about the option and the consequences that flow from exercising it. A poll would then be taken to determine how many workers wanted the provisions changed to allow the lump sum payment.

The Prime Minister explained that as the provisions stand the benefits are locked in until the workers with more than twelve years’ service reach the minimum retirement age of 60 for men and 55 for women.

According to the Prime Minister, the managers of the fund - GNCB Trust Corporation - have put forward the option, which is in line with the current provisions, of inviting the insurance companies to bid to take over the responsibility for the plan as it stood at July 31.

The successful company would then have the responsibility of managing the fund and making the monthly payments to the workers when they reach retirement age. The retirement age could be as early as 60 for men and 55 for women but the benefits at this age are less than if they opt to receive a pension at age 65 in the case of the men and 60 in the case of the women.

Stabroek News understands that at a meeting last week Saturday, which the Prime Minister chaired, it was agreed that the Institute of Development Studies at the University of Guyana would conduct the poll as well as assist with the education programme about the options and the consequences that flow from exercising them.

The Prime Minister, representatives of the Guyana Bauxite and General Workers Union and the Guyana Mines, Metal and General Workers Union as well as the Head of the Privatisation Unit among others signed a memorandum of understanding to this effect and which made the result of the poll binding on all parties.

While the arrangements are to be put in place to determine the way forward for the pension plan, a secretariat has been set up to deal with among other things, the employees’ benefits. Stabroek News understands that the secretariat is negotiating with the GNCB Trust Company to undertake this work on contract. Before the Linmine wind-up, Stabroek News understands that GNCB Trust was involved only in making the monthly pensions based on paperwork prepared by the Linmine personnel department.