The Manx nationalist party Mec Vannin has criticised the government’s handling of public sector pension reform.
In a wide ranging discussion at its monthly public meeting, it was advanced that successive governments during the boom years had failed to ensure pension security for public sector schemes. A number of these schemes failed pension stress tests in the early 1990s.
The government had failed to encourage, via fiscal incentives, a broader roll-out of private sector schemes in workplaces across the island, it was claimed.
The view was advanced that because the present government scheme is not secured via an investment fund and is completely funded by the payment of current contributors, any government moves which effectively force workers to consider resigning from or attempting to take their benefits out of the scheme could be catastrophic in the medium to long term.
The following motion was adopted: ‘Mec Vannin views with concern the manner in which public sector workers are being treated over their occupational pension schemes.’
It is less than three years since the Government Unified Pension Scheme (GUS) was introduced.
Mec Vannin said the decision of government to revisit the issue must undermine the value that public sector workers can place on commitments given at the time GUS was introduced.
It said it is ‘tawdry’ of government to amend pension provision without agreeing to honour its commitments.