‘Money for less than 20 years left in pension fund’
THE Guernsey Insurance Fund, which covers benefits such as the old age pension, will be exhausted in less than 20 years unless it is made more sustainable.
Employment & Social Security president Peter Roffey said that an actuarial review of the fund would be published and it would show the consequences of the States ‘burying its head in the sand’ and not approving a proposal for an increase in employers’ contributions to the pension scheme.
This was proposed several years ago, but at that time it was rejected since it was too soon after the financial crisis and zero-10.
The reasons for postponing this had varied over the years, but the consequences of this would be seen.
‘The results of the actuarial review of the Guernsey Insurance Fund are particularly alarming,’ said Deputy Roffey.
‘The Government Actuary has calculated that if nothing is done it will be exhausted by 2039 – that’s less than 20 years away from now.’
The bringing in of the secondary, Your Island Pension, was work that ESS would be pressing ahead with to make sure it was implemented in 2022 and it was a top priority.
There was also grim actuarial news on the sustainability of the Long-term Care Insurance Fund and, while the previous States had approved a rise in long-term care benefit rates, it also declined to investigate a deferred property loans scheme.
This presented a challenge to ESS to work with P&R to make the fund sustainable.
‘If the current rates of contribution are maintained, the Government Actuary has projected that the balance in the Long-term Care Fund will fall to zero in 2053,’ he said. This was before taking into account the Assembly’s decision in principle to use the fund for care delivered in the home.’
The top priority for the committee was the disability, equality and inclusion strategy, with the anti-discrimination legislation at its heart and in the wake of a States decision to include religion and sexual orientation as well as disability, carer status and race, work had been undertaken to consult local groups which would lead to a report which he said would be coming to the States early next year.
St James’ Chambers had said that the law in relation to this remained a top drafting priority and would not change as long as this priority is retained by the new Policy & Resources Committee.
