Tynwald approves transfer of £5.2 million from pension reserve

Payments to retired government workers need topping up

Tynwald has approved moving £5.2 million from a pension reserve to general funds.

The court had been asked to transfer £5.2 million from the Public Service Employees Pension Reserve to revenue expenditure.

Treasury Minister Eddie Teare had asked the court for approval of the transfer to top-up payments to retired government workers.

Last week he explained how the shortfall is due to rising numbers of staff taking early retirement, transferring their pensions elsewhere, or claiming the maximum lump sum.

The Minister received unanimous backing for the move.

The bill for public sector pensions in the past year is put at £58.4 million, against a budget of £26 million. In February, £27 million was transferred, to bridge the gap.