Pension rise of 3.6% proposed – but trouble looms for fund

Friday 19th August 2011, 1:00PM BST.

Al Brouard PENSIONS and other contributory benefits will increase by 3.6% from January if the States approves Social Security proposals.

But it is warning that a significant increase of 1.7% in the employers’ contribution rate is needed to secure the long-term sustainability of the fund that pays for the benefits.

Social Security stated that, if current rates of employer contributions were maintained, the Guernsey Insurance Fund’s reserve would be wiped out by 2038 – at which point the States would have to find an additional £90m. a year (at 2011 prices) to keep paying the benefits.

The September Billet d’Etat includes the five-yearly actuarial review – 2004 to 2009 – of the Guernsey Insurance Fund, which pays for pensions and other contributory benefits such as sickness, unemployment and bereavement allowances.

‘The actuarial review is a real concern,’ deputy Social Security minister Al Brouard (pictured) said.

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1
Glen Broadhurst

August 19, 2011 at 6:23 pm

Why have the Social Security only proposed an increase in employer contributions and not employee contributions ?
Surely it should be for the States to decide if one should be increased above the other.

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2
Ray

August 20, 2011 at 9:07 am

A cousin(twice removed)was looking into the feasibility of opening a jewellers shop in Town last month

His main problem in July was the extremely high rent being demanded for a shop which has been closed for about twelve months

He was also having difficulty in getting an explanation for the refusal of a bornement to have some minor alterations done to the shop front

This month he has been advised that the minimum wage is going up,Employer’s Social Security contributions are going up,staff are likely to be given six months paid maternity leave and his buildings / contents insurance will rocket because he will not be able to install an essential security shutter

There are also the annual rumblings about paid parking which will have a detrimental affect on the Town traders

Having decided to leave his money in his Yorkshire Guernsey bank he has now had a letter informing him that the bank is leaving the island … some sort of mass exodus apparently

At least his two sons are nicely settled in at Elizabeth College

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