Pension contributions reduced due to fund surplus

Pension contributions for public employees have been reduced due to surpluses in the funds.

The Treasury and Exchequer said there was a surplus of £456m in the Public Employee Pension Fund - Final Salary and a surplus of £125m in the Public Employee Pension Fund - Career Average.

Consequently ministers have agreed employer contributions would reduce from 16% to 13.8% and employee contributions from 7.9% to 6.9% from 1 June.

Unite the Union called the reductions a "win-win", which would be "of great benefit" to union members and taxpayers alike.

James Turner, Jersey's regional officer for the union, said the additional 1% in take home pay would help members cope with the "exceptional" cost of living in Jersey.

He said the pension would remain the same at the end of the term but in effect employees would have a 1% pay rise, since the 1% currently going into the pension would instead go into take-home pay.

Teachers and head teachers will not see any change as they are part of the Jersey Teachers Superannuation Fund, which remains unchanged.

The government said the adjustments would save taxpayers about £10m a year.

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