States Members’ pension idea condemned by ministers and union

Friday 08 May 2015

Plans for States Members to get taxpayer-funded pensions are insulting to States workers facing pay freezes and to the public in general, says Economic Development Minister Lyndon Farnham - while Jersey's "Chancellor" says that if politicians want pensions, they should pay for them out of their generous £46,600 per year salaries.

Meanwhile, the head of Jersey's biggest civil service union has linked the proposal to the pay freeze that ministers want to impose on their own members. Yesterday it was revealed that politicians had been planning to give themselves pensions, with up to £4,000 per year of taxpayers’ money matching their own contributions on a pound-for-pound basis.

If every States Member took up the offer, it would cost the public up to £196,000 per year – at exactly the same time that the Council of Ministers are proposing to fill a black hole in public finances by cutting £65 million from States’ pay budget through job cuts and pay freezes, as well as £35 million from other cuts and a £35 million “health charge” on taxpayers.

JCSA Prospect - the biggest union representing Jersey civil servants - linked the pension proposals to the backdrop of pay freezes and possible redundancies for public sector workers.

A statement from the union said: "As a Trades Union we support the right of all employees to reasonable terms and conditions and would support a pension scheme as I'm sure the Deputies and ministers would support a reasonable pay settlement to staff."

Most politicians say the idea is a non-starter, with Treasury Minister Alan Maclean saying that it was simply not realistic.

"If Members want pensions, then they should pay for them out of their generous remuneration," he said.

"Given the financial circumstances that the Island finds itself in, this proposal is simply not realistic or feasible."

And Senator Farnham says that he’s shocked that it’s even been raised.

He said: “The States should not even be considering debating such an idea at the current time.

“The whole issue of whether States Members should get pensions is one that needs separate discussion, but more importantly the States should not even contemplate even discussing it until we have put our finances right.

“I’m absolutely amazed that it has even been suggested.

“We are going to be reforming the public sector, and we must focus on that – that’s our priority and we must not be distracted by such ill-conceived ideas.”

Yesterday, it emerged that the Privileges and Procedures Committee responsible for States reform and administration have asked all of Jersey’s 49 politicians to tell them by the end of today whether they’d like to take up the offer of a pension scheme. They say that they’ll take the responses and ask for the money to be found in the States’ financial plan, due to be released next month.