'More flexible' Isle of Man public sector pension plan set up

A choice of pension options has been introduced in the public sector

Anyone joining the Isle of Man's public sector from April next year will be offered a new type of pension scheme.

The Defined Contribution is determined by the amount paid in over time and the "performance of investment funds".

The current Defined Benefit option, which is still available, sets a fixed income from the time of retirement.

It follows a report on public sector pensions looking at options "to contain the legacy funding gap", which has said to have built up over "many years".

A government spokeswoman said the new scheme aimed for "a gradual transition" to a more flexible approach and will "reduce the burden on public finances".

Defined Contribution schemes are "usually seen in the private sector and provide employees with a more flexible and portable retirement fund", she said.

The new scheme will be a contract directly between the employee and the pension provider, rather than a statutory arrangement with the government.