Tynwald endorsement for further reform of the Island’s public sector pension schemes will be sought in a motion to the June sitting from the vice chair of the Public Sector Pensions Authority (PSPA), John Shimmin MHK.
Members will be asked to back previously published proposals for change to both the Government Unified Scheme and the Tynwald Members Scheme, and to support negotiations to change the schemes for teachers, police and the judiciary.
If the motion is successful, the PSPA will consult on detailed scheme changes with a view to formal amendments to all schemes being presented for Tynwald approval by February 2017.
The changes are expected to alleviate but not solve the long-term ‘legacy’ funding gap between total scheme income and pension benefits paid out.
In respect of options for managing the legacy deficit, the motion agrees to further investigation by the PSPA and Treasury in conjunction with Tynwald Members, with a further report to be produced for Tynwald after the general election.
Reform of public sector pensions was originally due to be debated at the April Tynwald but the matter was deferred until the June sitting to allow Members more time to consider the issues. Since then there have been further meetings with Members and a public meeting on the subject at the Manx Museum in Douglas.
The proposals for changes to the Government Unified Scheme include adoption of a ‘cost envelope’ approach, imposing a ceiling on the overall cost of the scheme in the future.