19 October 2006
The Isle of Man Government is facing a £1bn deficit in the
fund for its civil service pensions, a Tynwald select committee has
reported.
Pam Crowe, MLC, chairman of the Select Committee on the Civil
Service Pension Scheme, said the shortfall is increasing by
£50m annually. She said that the problem should have been
addressed earlier, and added that the Manx Government could have
difficulties continuing to fund the liability.
Mrs Crowe said there were several possible ways of dealing with
the crisis, including closing the schemes to new entrants and
looking at whether a final salary scheme is appropriate for new
entrants. Other options included raising the retirement age from 60
to 65 or increasing employee contributions.
