Guernsey Press

HSSD: St John pension fund hole of 'significant concern'

A MULTIMILLION-POUND black hole in the ambulance service's pension scheme is of 'significant concern', Health and Social Services has warned.

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The department said it was working with St John Ambulance and Rescue to ensure appropriate action was taken by the already financially-stricken taxpayer-subsidised service.

The £4.5m. pension deficit was revealed in the 2012 annual report and accounts for the national SJA organisation.

The island service is currently drawing up options to tackle the problem, including moving all its employees away from the controversial final salary pension scheme – the same plan that is subject to proposed reform across the States.

An HSSD spokesman said it was aware of changes made to the scheme in 2006 when the organisation scrapped the controversial final salary pensions – otherwise known as defined-benefit schemes – for all new employees from the end of 2006. Instead, new employees have been offered an alternative defined-contribution pension scheme.

The HSSD spokesman said the department was also being kept informed of any future changes, which include the option of scrapping the final salary pension scheme altogether.

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