Peter “Ras Ipa” Isaac, President of the Vendors Association, has concerns about the lack of a robust pension plan for the organisation’s members.
He disclosed that despite repeated calls for financial contributions, the association has yet to establish a successful pension scheme.
As a result, many vendors nearing retirement age face an uncertain future.
Isaac admitted, “I have to be honest with you; vendors are very delinquent when it comes to really standing up and financially contributing their dues to the vending association.”
This financial shortfall has prevented the establishment of a sustainable pension plan.
The association has explored several options, including the possibility of partnering with insurance firms, but according to Isaac, these efforts have yet to come to fruition.
To address this issue, Isaac explained that the Vendors Association has contacted the National Insurance Corporation (NIC) to seek a viable alternative.
“We wrote to the NIC, we wanted to know exactly how it works for a self-employed person, because we’ve seen where vendors are stuck in situations where they’re unable to fend for themselves and we have put things like hampers together to support them. Sometimes we do a hamper and get some financial assistance, but we cannot maintain that at all,” he told St. Lucia Times.
Through this partnership, the Vendors Association president said his organisation can now issue a letter to vendors that allows them to start contributing to an NIC pension plan.
Vendors can make contributions of as little as $50 per month.
“Not only pension but also, they can secure some kind of medical assistance, or if they do not qualify for some kind of pension they can get a lump sum of a fraction of what they paid. So we are encouraging people all the time to start to pay something,” Isaac stated.
The Vendors Association is urging all members to take advantage of this opportunity and start contributing to secure their financial future before it is too late.
Over the past 3 years, inflation has been raging at about 30% annually and likely more. Your pension plan maybe gives you back 3% annually. My pension plan worth $100 3 years ago could’ve bought me 20 boxes of pasta. That same $100 today can only buy me 10 boxes of pasta. Purchasing power is being destroyed so rapidly it makes no sense to have a pension plan. By the time most people are ready to access this plan it will likely be worthless.
You need something like a 401k/retirement fund where the vendors can make their own contribution in a secure financial management company. This way when they reach the age – they can then withdraw from what they have already paid into – but then again this is St. Lucia – I am not certain ????????
Most of the Castries venders are in something you called susu…. Most of the vendors are off springs or linked from back in the days what was called SLBA.. the collapse of the banana association have cause these people to not place trust in these association. Understanding that they may or may not thinking of their future that have to come with a degree of trust. Like the old saying who feels it knows it. If most of the vendors are over the age of 45 contributing to the nic will not make sense. 1st national have a salary protection plan they have established, this is the only door open for the vendors. I am not link to the bank but the vendors should look at that direction because the susu just fills a void are certain time. But by contributing to that bank program not only that you are securing a salary but also to assist in loans because they now have a trace of your earnings. As much as NIC is an option but the contributing factor plays a big role in returns. They need to think about that route realistically.