Public sector consultation on measures to share a pension saving

It's open to employees who pay into certain government schemes

Public sector employees are being consulted on proposed changes to pension schemes by the Public Sector Pensions Authority.

A six week consultation's been opened with employees who currently pay into the government's unified teachers, judicial and police pension schemes.

The proposed amendments follow the PSPA's first cost sharing valuation in 2022, which shows the cost of providing public sector pensions will reduce in the future, resulting in a saving.

The Authority is required to share any change in costs with contributing scheme members through a mechanism approved in Tynwald in 2020.

Proposed changes requiring Tynwald approval include - increasing the accrual rate - which means pensions will build up more quickly.

Also, in respect of members of the Teachers Scheme 2025 a 1% reduction in their contribution rate, and a provision for retirees to be able to exchange part of their pensions for a lump sum at a rate that is more in line with other public sector schemes.

If the proposed amendments are implemented increases to pensions will be applied and backdated to 1 April 2024. Adjustments to contributions and pension exchanges rates will be made from 1 April 2026.