A top accountant has argued that the enormous size of the government’s unfunded pension liability is yet further evidence of why the government must not only act immediately to reform its current pension system, but also begin to reduce the size of the civil service as a critical component of addressing this “unsustainable” financial situation.
Raymond Winder, partner with local accountancy firm Deloitte and Touche (Bahamas), said he is pleased to see some recognition by the government of the size of the unfunded liability and said the key question now is, “What is the government’s response to this?”
He further argued that the government must ensure that it does not push the problem down the road, seeking to address it in the short term through tax measures, such as the implementation of value-added tax (VAT), but get to the root of the issue. […]
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