The Government is proposing to phase in the five percent pension contributions by public sector workers which is slated to begin on April 1 this year.

This decision by the Andrew Holness administration could be favourable to several public sector groups which have been pressing the Ministry of Finance to consider this approach.

Finance Minister, Audley Shaw, who opened debate on two pension bills in the Lower House this afternoon, said the move is intended to ease the hardships that the workers would face if the five per cent contribution was to be made in one instance.

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Another issue that triggered concern among some public sector workers was the imposition of a penalty on workers who retire early.

Shaw told his parliamentary colleagues that the legislation is being amended to remove the penalty for early retirement.

The finance minister said the Government is encouraging early retirement and therefore the penalty runs counter to its policy.