Public sector workers face higher pension contributions under government plans
Thousands of Manx government workers could have to pay more in pension contributions under plans to be discussed by Tynwald next month.
The minimum retirement age could also increase by three years to 58 under the government proposals which have been drawn up by Chris Robertshaw MHK.
The policy and reform minister said changes were needed to "substantially reduce the funding gap".
The proposals will be debated by the Manx Parliament in December.
The working group recommends a 3% increase in contributions by government workers, phased in over three years.
A spokesman said the Public Sector Employees Pensions Reserve Fund could be prolonged for "at least 20 years" if the reforms are passed.
- A 3% increase in contributions phased in over three years for Government Unified Scheme members
- Raising the minimum retirement age from 55 to 58
- Similar reforms for police officers, teachers and 'Judicial Schemes' staff
- Tynwald members' contribution to increase from 5% to 10% for newly elected members
- Current Tynwald members to contribute 15%
The plan also calls for the rate paid by Tynwald members to double.
Mr Robertshaw said: "At a time when government is addressing the long-term sustainability of the state pension, it is only fair that we revisit this aspect of public sector pensions.
"[We need] to ensure that the system has a viable future and that it does not place an undue burden on public finances."
The report concludes that the Government Unified Scheme - introduced in 2012 - has "not achieved the savings expected" when it was designed six years ago.
GUS brought together 15 schemes previously tied to the UK and required increased employee contributions from many public sector groups.
The group's spokesman added that its proposals would need full consultation.