Minister opposes proposed pension calculation changes

Plans to change the way pensions are calculated in Jersey have been opposed by the social security minister.

Senator Alan Breckon wants the States to agree future increases should not just be based on the average earnings index.

But the minister Senator Francis Le Gresley disagrees.

He said the move would cost workers more, at a time when contributions would have to rise just to keep things the way they are.

In a change to the existing system, Senator Breckon is asking that pensions should go up by whichever is the greatest of three different criteria; the average earnings index, the rate of inflation for pensioners, or 2.5%.

But Senator 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.

He will ask the States to reject Senator Breckon's plan during a debate on Tuesday.
(from BBC)