Public sector pension scheme (FOI)

​Request 

In the UK, new entrants to the old Final Salary Pension Scheme ceased in 2007. In Jersey this happened in 2015, some 9 years later. With phasing in periods, all are now enrolled into the Career Average Pension Scheme. In Jersey, this means as late as 2019.

There is still disquiet as to the sustainability in the UK of the Career Average Pension Scheme, and there is a desired move towards Defined Contribution Scheme or Money Purchase Scheme, as life expectancy has increased etc. 

A

In Jersey, the costs to the taxpayer for the very very generous pensions they afford Civil Servants is astronomical on an ongoing basis. When is the whole issue of Public Sector Pensions going to be realistically investigated and moved towards a more sustainable level as per Defined Contribution Scheme or Money Purchase Scheme?

B

Why was Jersey so late in closing the Final Salary Pension Scheme, allowing the very generous contributions by the taxpayer to increase with exorbitant increases in salaries to reach "Final Salary"?

C

Please confirm that 4 Advisers in the Bank of England are retained by the States of Jersey to hold monthly meetings on financial matters, as oversight. What are the official titles of these persons, and who are they?

 D

Referring to C above, when were they contracted/employed?

Response

A

The Freedom of Information (Jersey) Law 2011 gives a right to request information that is held in recorded form, unless exempt. This aspect of the request poses a question rather than seeking information held in recorded form. In any event, this information is not held. Article 3 of the Freedom of Information (Jersey) Law 2011 applies. 

However, in 2015, the Public Employees Pension Fund (PEPF) was reviewed to ensure it was sustainable, affordable, and fair for the future. Legislation was passed to change scheme benefits from being based on final salary to being based on lower career average earnings. The PEPF is not a traditional balance of cost defined benefit pension scheme and scheme benefits can be reduced to address any funding shortfall. The cost to Government is capped in Law at a maximum of 16.5% of pensionable earnings. There are no plans to review the current scheme arrangements.

B

The Freedom of Information (Jersey) Law 2011 gives a right to request information that is held in recorded form, unless exempt. This aspect of the request poses a question rather than seeking information held in recorded form. In any event, this information is not held. Article 3 of the Freedom of Information (Jersey) Law 2011 applies.

C

The Fiscal Policy Panel is made up of three members, none of whom are currently advisers in the Bank of England. Information is publicly available on www.gov.je in the following link under the heading "Panel members".  Article 23 of the Freedom of Information (Jersey) Law 2011 has been applied.
Fiscal Policy Panel (gov.je)

D

Please refer to the link provided in response to question C. Article 23 of the Freedom of Information (Jersey) Law 2011 has been applied.

Articles applied
Article 3 - Meaning of "information held by a public authority"

For the purposes of this Law, information is held by a public authority if –

(a) it is held by the authority, otherwise than on behalf of another person; or

(b) it is held by another person on behalf of the authority.

Article 23 - Information accessible to applicant by other means

(1) Information is absolutely exempt information if it is reasonably available to the applicant, otherwise than under this Law, whether or not free of charge.

(2) A scheduled public authority that refuses an application for information on this ground must make reasonable efforts to inform the applicant where the applicant may obtain the information.