THE quest to safeguard Social Security funds beyond 2040 will depend on which levers the States decides to pull and raising the retirement age is just one of them.

The States yesterday heard how, on current projections, funds for schemes covered by the Guernsey Insurance Fund, the Guernsey Health Service Fund and the Long-term Care Insurance Fund will be exhausted by 2040.

These schemes include old-age pensions and invalidity, sickness, unemployment, prescription drug and nursing home benefits.

In presenting a Green Paper, Social Security minister Mark Dorey (pictured) told members that what they said yesterday would shape the report and solution the department would bring to the Assembly around the middle of 2009.

‘The solution will involve either a reduction in benefits, an increase in income or a combination of the two.

‘What has had the most publicity is the possible increase in pension age. The important point about any increase is that it would be phased in over 30 years and it would only be the 28-year-olds of today who would be the first to receive their pension at 70.’