Guernsey pension scheme 'overhaul needed'
- 27 September 2013
- From the section Guernsey
An overhaul of Guernsey's public sector pension scheme is needed to avoid a £500m deficit in the fund, a Guernsey minister has said.
Allister Langlois, who is the Social Security Minister, has outlined proposals to change the system, which include increasing contributions.
Plans for people to retire later and move from a final salary to a career average scheme, were also announced.
However, some union members are angered by the proposals.
Mr Langlois said: "We want to make sure people get a decent pension... we don't want to move people to a position where more of them have to claim benefits."
Under the proposals, the retirement age would become the same as the normal state pension age, which is currently 65 but due to rise to 67 by 2031.
Ed Freestone, who represents unions involved, said: "We need to make sure the decisions we make will allow people to enjoy retirement and not face things like fuel and food poverty."
Mr Freestone, who is the president of the Guernsey Association of Civil Servants, added unions would not be rushed to push through the changes.