Impact of staffing reductions upon the Career Average Revalued Earnings pension scheme

Published on: 8 March 2016

Question type: Written

Asked by: Geoffrey Southern

Answered by: Chief Minister

This content has been automatically generated from the original PDF and some formatting may have been lost, therefore it should not be relied upon to extract citations or propose amendments. Please see the PDF for the official version of the document.

1240/5(9282)

WRITTEN QUESTION TO THE CHIEF MINISTER

BY DEPUTY G.P. SOUTHERN OF ST. HELIER ANSWER TO BE TABLED ON TUESDAY 8TH MARCH 2016

Question

What estimate has been made of the effect of achieving significant reductions in staffing within the next three years, and what impact would that have on the viability of the new Career Average Revalued Earnings (CARE) pension scheme?

Answer

There is no impact on the viability of the new Career Average Revalued Earnings (CARE) pension scheme from a reduction in staffing levels. The new pension scheme has been costed using prudent assumptions so that the employer and employee contributions cover the CARE benefits being accrued. While a smaller number of new employees would result in a lower level of contributions being paid into the scheme this will be matched by a lower level of benefits being accrued and a lower level of scheme liabilities. There is no impact on CARE scheme viability.