Civil servants to get pensions shake-up
Wednesday 12th December 2012, 12:00PM GMT.
GUERNSEY’S public sector final salary pension scheme will finally be scrapped under plans revealed today.
The new arrangement will come into effect from January 2014 if it receives the endorsement of the States.
It will see benefits linked to an employee’s average ‘revalued’ salary over a whole career.
Proposals will also limit the level of pensionable pay in any year for top earners at £85,000 – but an allowance in lieu of taxpayer pension contributions will be paid to members earning above this level.
In its report, the joint working group explained that for each year of employment, members would earn a pension based on income for that year.
Upon retirement, the yearly amounts, revalued to retirement in line with RPIX price inflation capped at 5% pa, would be added together to calculate the pension.
- The review group was led by independent chairman Rodney Benjamin, pictured.