Employers' pension bill to fall under reforms

Pensions to cost employees more

Government says a second major reform of public sector pensions in the Island would cost employers less.

Fresh proposals from the Public Sector Pensions Authority call for a drop in the proportion paid by government towards staff pension pots, from three-quarters to two-thirds.

As a result, employees would have to contribute more - a rise of 2.5% to 10% of the average member's pay has been suggested. 

A report outlining changes the PSPA says are needed to meet future pensions liabilities is due to go before Tynwald next month.

Proposed changes will be subject to further debate and consultation after that, with implementation in April 2017 at the earliest.

Jon Callister is the executive director of the Office of Human Resources at the Cabinet Office.

He explains what could happen to the cost of pensions and how they are met, under the proposals: