What cost sharing is

The PSPA manages and administers the unfunded public sector pension schemes (the 'pension schemes') in the Isle of Man, including the Government Unified, Police, Teachers and Judicial pension schemes. As part of the ongoing programme of ensuring that the pension schemes remain sustainable into the future, the PSPA has established a cost sharing mechanism for the Unified, Teachers, Police and Judicial Schemes. Cost Sharing is way of assessing every 6 years how the costs of a scheme have changed over that period of time. If certain costs have increased (or decreased), the cost sharing mechanism will then allow those cost increases (or decreases) to be shared between scheme members and the Employer.