Guernsey Press

Post blames pension costs for funding shortfall

GUERNSEY Post is facing an immediate funding shortfall of £1m. as it seeks to combat its spiralling pension costs.

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GUERNSEY Post is facing an immediate funding shortfall of £1m. as it seeks to combat its spiralling pension costs.

And the States-owned utility's chairman has said its board is 'profoundly disappointed' with the lack of progress in pushing through changes to the States' public sector pension scheme.

'The board of Guernsey Post wants to see change as the pension scheme liability is open-ended and costs are likely to rise significantly over time as longevity increases,' chairman Dudley Jehan, pictured, wrote in the company's annual report.

As at 31 March this year, the Guernsey Post pension fund was valued at about £33.4m..

When an accountancy best practice formula - FRS17 - was used to calculate the fund's future liabilities, a net deficit of £9.3m. emerged.

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