Following the Board’s most recent consideration of the matter, the following statement has been provided to media outlets to raise awareness and to highlight the Board's frustrations regarding the Isle of Man Government's missed opportunity to provide savings to ratepayers throughout the Island:
“The Board of Onchan District Commissioners wishes to express its disappointment at the present administration's failure to introduce reforms to local government pensions. Currently, the Local Government Superannuation Scheme in the Island is based on the England and Wales Local Government Pension Scheme. However, the Island's Scheme has not been updated since 2012.
It has been agreed by the Department of Infrastructure that the Scheme should be reformed based on the Government Unified Scheme (GUS) model, but the legislative drafting required has not been prioritised to date. Completing this project would result in savings to ratepayers, as follows:
- The GUS includes a cost‑sharing mechanism, under which only 25% of changes in pension costs fall to employers, with the remaining 75% met through adjustments to member contributions and/or benefit accrual rates.
- The current Scheme is based on outdated England and Wales provisions, creating administrative inefficiencies because it cannot be administered using consistent processes with any other pension scheme."
Oliver Lockwood, Lead Member for Finance and General Purposes, on behalf of the Board of Onchan District Commissioners.