States members vote against Jersey pension increase changes

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The way States pension increases are calculated in Jersey will not change.

The States of Jersey has voted against Senator Alan Breckon's proposal for a new way to calculate pension increases.

At the moment the way pension rises are calculated in Jersey is linked only to the rise in the average earnings index.

But the senator asked that pensions should go up by whichever was the greatest of three different criteria; the average earnings index, the rate of inflation for pensioners, or 2.5%.

Senator Breckon said he was concerned it did not reflect the growing cost of living in Jersey.

But Social Security Minister, Senator Francis Le Gresley, said over time the more generous plan would cost taxpayers millions extra and by 2069 that could be as much as £30m a year.

Pleas to support the proposition came from many members, but in the end it was rejected by 25 votes to 17.

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