The big pensions shake-up

Eight thousand government workers could face paying more for their pensions and waiting longer for retirement if a set of reforms to public sector pensions is agreed by Tynwald next month.

After the creation of a single new government pension scheme two years ago did not produce all the savings required, a report's recommending a three per cent increase in employee contributions to make up the shortfall.

Employers will also have to pay more towards their staff pensions if the proposals from a working group are supported.

Tynwald members themselves will be asked to pay more too.

Working group chairman, MHK Chris Robertshaw, said all options were considered – including closing the scheme to new members and ending final salary benefits – but says the committee rejected more radical options.