New fears over pension deficit

A damning report by the Public Accounts Committee has claimed that hundreds of millions of pounds in States reserves could be wiped out by the pension ‘black hole’, which currently stands at £526 million and rising.

But Treasury Minister Philip Ozouf has fiercely denied the claim. He says that the deficit is around £63 million and that under a deal made years ago, it will be made up by past and present employees, not the taxpayer.

In effect, that would mean States workers, including nurses and teachers, top civil servants and road sweepers, would have to pay more in contributions or accept smaller pensions on retirement.

Full story in Friday’s JEP