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WRITTEN QUESTION TO THE CHIEF MINISTER BY CONNÉTABLE OF ST. JOHN
ANSWER TO BE TABLED ON TUESDAY 5th JULY 2011
Question
Would the Minister please advise which categories of employees in the public sector are able to retire earlier than 65 and receive a full pension?
Can he also advise what extra percentage is paid as an employer contribution for these employees on top of the amount paid for employees whose normal retirement age is 65 and advise the total cost to the public purse annually of these additional contributions?
Answer
Under the Public Employees Contributory Retirement Scheme (PECRS) there are four different schemes. Within the differing scheme Regulations there are various categories, i.e. Uniformed Members (Category A and Category B) and Non-Uniformed Members. Please note Category A refers to front line uniformed Members such as Police Officers, Fire-Fighters, Prison Officers, Paramedics, whilst Category B covers the Senior Officers of those services.
Table 1 below details normal retiring age, optional retiring age and maximum pensionable service allowed in order to receive a full pension.
Table 1 | 1967 Regulations | Former Hospital Scheme (FHS) | Existing Members | New Members | New Members (2006 Regulations) |
Normal retiring age | 65 (males) 60 (females) | 65 (males) 60 (females) | 65 (males and females) | 65 (males and females) | 65 (males and females) |
Optional retirement age | Any time up to five years before normal retiring age subject to 10 years' reckonable service | Any time up to five years before normal retiring age subject to 10 years' reckonable service | Any time up to five years before normal retiring age subject to 10 years' pensionable service | Any time up to five years before normal retiring age subject to 10 years' pensionable service | Any time up to five years before normal retiring age. Members who opt to retire before normal retiring age have their pension reduced by (currently) 2.4% for each year the pension is being taken early |
Maximum pensionable service allowed | 45 years | 45 years | 45 years | 45 years | 45 years |
Table 2 below details the PECRS Category A and Category B normal retiring age, optional retiring age and maximum pensionable service allowed in order to receive a full pension.
Table 2 | 1967 Regulations Category A/B | Former Hospital Scheme (FHS) | Existing Members Category A/B | New Members Category A/B | New Members (2006 Regulations) Category A/B |
Normal retiring age | Cat A age 55 Cat B age 60 | N/A | Cat A age 55 Cat B age 60 | Cat A age 55 Cat B age 60 | Members who became Cat A members on or after 1 March 2009 no longer have the option of taking early retirement before age 55 the normal retirement age |
Optional retirement age | Cat A age 50 Cat B age 55 | N/A | Cat A age 50 Cat B age 55 | Cat A age 50 Cat B age 55 | Cat A age 55 Cat B age 55 |
Maximum pensionable service allowed | 35 years | N/A | 35 years | 35 years | 35 years |
Under the Jersey Teacher's Superannuation Fund (JTSF) there are two different schemes, Existing Members and New Members.
Table 3 below details normal retiring age, optional retiring age and maximum pensionable service allowed in order to receive a full pension under the Jersey Teachers Superannuation Fund (JTSF).
Table 3 | JTSF Existing Members | JTSF New Members |
Normal retiring age | Not defined in the Regulations | Age 65 |
Optional retirement age | Age 60 (Subject to 2 years' service) (Before 1 April 2007 subject to 5 years service) | Subject to 2 years service - any time up to five years before normal retiring age. Members who opt to retire before normal retiring age have their pension reduced by (currently) 2.4% for each year the pension is being taken early. |
Maximum pensionable service allowed | 45 years (A limitation on pensionable service means that service cannot count if more than 45 years in total or more than 40 years service before age 60). | 45 years |
Question
Can he also advise what extra percentage is paid as an employer contribution for these employees on top of the amount paid for employees whose normal retirement age is 65 and advise the total cost to the public purse annually of these additional contributions?
Answer
In terms of the PECRS the same percentage is paid for all employees, currently 13.6% this covers all categories of staff within PECRS. The employer also pays an additional 2% based on a figure capitalised as at 2001 for the Pre-1987 Debt.
The Employer contribution rate for the JTSF is currently 16.4% which includes an amount agreed with the actuaries in order to service the Pre-2007 Debt. Again this is a global rate and covers all JTSF members.