Tynwald approves new public sector pensions scheme

Wed, 22 Jun 2011

Chief Minister Tony Brown MHK

Tynwald has approved changes to public sector pensions

Under the Unified Pension Scheme, current workers will pay a 5% contribution rate, getting two thirds of their final salary upon retirement.

The changes will start from April next year.

Those already in the scheme will be able to pay extra to protect their current pensions package.

Without the changes, it was estimated that the pensions reserves would have been empty within 20 years.

Tynwald will have control over changes to the scheme, and the link with the UK will be broken.

Tony Brown says it's been a lengthy process to get the scheme drawn up [play clip]