Liberal Vannin leader Peter Karran will seek Tynwald backing next week for a reform of members’ pensions.
Mr Karran has tabled a motion calling for the current pension arrangements to be replaced with a money purchase scheme after the next general election.
The Onchan MHK admits that he is on a very good pension – being on the old 1985 scheme, he will receive a full pension based on his tenure as Education Minister despite being in that post for just eight months.
He told the Examiner: ‘It would be irresponsible if we don’t address this issue. We’ve got to bite the bullet.
‘We have to lead by example. Anyone elected after the next general election is going to have to go onto a money purchase scheme. If I had had my way the final salary scheme would be finished about eight years ago.
‘If we are going to afford a proper education for our kids we are going to have to cut our cloth accordingly. I get a good pension – there is no doubt about that. I don’t believe that members should not get a reasonable pension if they do their job – but it has to be affordable.’
Mr Karran said pension rights accrued under the old system would still be honoured.
His motion calls for Tynwald to ‘view with concern the unsustainability of the members’ final salary pension scheme; recognises its commitment to honour those pension rights already granted; is of the opinion that members’ pensions should be based on a money purchase scheme immediately after the 2016 General
Election; and believes that this would be in accordance with Tynwald’s commitment to the protection of taxpayers’ interests’.
Tynwald members began contributing to their pensions for the first time in April 2012.