Pension fund deficit frightens industry leader

Saturday 9th August 2008, 2:29PM BST.

Phil Duquemin. 0421241.

THE underfunding of the States’ employees pension fund is worrying a local industry leader.
Former Confederation of Guernsey Industry chairman Phil Duquemin said the States was now carrying a ‘frightening liability’.
The value of the superannuation fund should not worry people, but the increase in the scheme’s pension deficit should.
The pot of money stood at £807.5m. on 1 August but was almost £90m. down on the turn of the year.
But when the fund was worth £896.4m. on 31 December, it was already carrying a net pension liability of £127.7m. Similarly, when the fund was valued at £846.9m. at the end of 2006, it had a liabilities deficit of £160.5m.

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B.L.Cumner

August 9, 2008 at 8:04 pm

Mr. Duquemin is absolutely correct to raise his concern.
No former States’ employees will suffer in the short-term.
However, the Pension Fund should be fully funded to avoid the problems experienced by UK companies in recent years.
It’s simply an added cost of running the States’ Pension Fund which should be addressed and absorbed sooner rather than later.

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