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WRITTEN QUESTION TO THE MINISTER FOR SOCIAL SECURITY BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 2nd FEBRUARY 2016
Question
Will the Minister inform members what specific measures are under active consideration to incentivise and encourage employers, especially owners of small and medium-sized enterprises, to enrol their employees on occupational pension schemes?
Will she also inform members what proportion of employees, by economic sector, have access to and are enrolled in such pension schemes and what numbers are reliant solely on the States pension along with any targets he may have to improve retirement incomes under such schemes? Can she further indicate how Jersey compares with other jurisdictions in this regard?
Answer
The MTFP agreed by the States in October last year included the following commitment:
During the course of this MTFP, the Social Security Department will also work with the Treasury and Resources Department to promote financial independence in old age, and to encourage a higher proportion of workers to take up occupational pensions. For example, this could be achieved through changes in income tax or benefit rules, as well as the promotion of work-based pension schemes aimed at lower earners.
In preparation for developing policies in this area, a range of questions were included in the Statistics Unit 2015 Jersey Annual Social Survey (see pages 54 – 60). This report includes information on responses to the questions:
I have a good occupational pension 36% agreed at some level; and I am relying on the States to look after me in retirement 24% agreed at some level.
I am currently planning a major review of the Social Security Fund and its long term sustainability. Alongside that review, I will also be working with the Treasury and Resources Minister on the wider issue of financial independence in old age as noted above.
For example, the 2015 Jersey Annual Social Survey also sought peoples' views on the introduction of new pension schemes. The majority (66%) of residents supported the option that the States should provide a voluntary additional pension scheme for workers who wish to save for their retirement. There was slightly less support (51%) for the option of a compulsory additional scheme being introduced.
Work in this area will draw on further analysis of data available in Jersey and examine the experience of other countries. We will continue to engage with employers and the general public on these issues and from there consider what the appropriate policy options are. Specific measures will be developed once this has been done.