Tynwald members have voted unanimously in support of the latest proposals for pension reform.

Amendments, which were proposed last year, will see existing members of the Government’s Unified Pension Scheme pay 2.5 per cent more in their pension contributions but will receive six per cent less in benefits overall after working for longer.

Policy and Reform Minister Chris Thomas said the initial challenge had been to make the existing pension schemes sustainable in the future as life expectancy increases and people draw their pensions for longer. He said the proposals from the Public Sector Pensions Authority report focused on the current so-called Unified Scheme and had been broadly supported by the trades unions.

The second problem, he said, was addressing the ’legacy funding gap’, in other words those pensions paid to public sector scheme members who have already retired.

This funding gap is expected to shoot up from £44.9 million currently to £96.4 million by 2034-5.

’This is the subject of further work by the Public Sector Pensions Authority and the Treasury and a further report will be submitted for consideration later this year,’ he said.

’This is one more step down the road to public sector pensions that are sustainable.’

Proposals are expected to go to Tynwald after an actuarial review of all public sector pension schemes.

Middle MHK Bill Shimmins noted even following reform, pensions would remain generous compared with the private sector.

’I realise progress has been made but it’s taken too long to get this far. I would like more rigour and pace to be injected,’ he said.

Noting the next actuarial valuation was due within six months, Mr Shimmins proposed the PSPA present a full set of options and proposals on the legacy funding gap to Treasury by November.

Seconding the amendment, Ralph Peake MHK (Douglas East) said the sooner it was addressed the better.

Ramsey MHK Alex Allinson warned it was important to have certainty to aid recruitment and retention of essential professional workers in the island.

Claire Bettison MHK (Douglas East) pointed out recruitment problems in the health service had already led to high costs funding agency and locum staff.

Treasury Minister Alfred Cannan accepted the amendment added impetus to proceedings.

Members voted unanimously in favour of both the amendment and the pension proposals.