Pension reforms could trigger exodus - Prospect

Reforms 'don't address' historical liabilities

A union representing 2,000 public sector workers in the Island has warned fresh pension reforms could trigger a major exit by staff.

Prospect has rejected the latest proposals to reduce the cost of pensions, which include members of the scheme contributing 2.5 per cent more of their pay for reduced future benefits. 

New pension scheme members would pay 50 per cent more compared with existing members.

The government says changes are needed to secure the long-term viability of public sector pension schemes.

However, the reforms don't address historical liabilities for pensions already being paid - named 'the legacy funding gap'.

Prospect's negotiations officer Angela Moffatt says it's a grim outlook, which is tempting some to take their pension and run: