Governance of the States of Jersey Pension Schemes

Background

The States of Jersey operate two statutory funded pension schemes

to provide occupational pensions to employees of States funded bodies

and other entities connected to the States:

• the Public Employees Contributory Retirement Scheme (PECRS); and
• the Jersey Teachers’ Superannuation Fund (JTSF).

In May 2014, the States passed a Law to make major changes to PECRS.

In 2008, the then C&AG published his report ‘Pension schemes for States’ employees – governance’. This identified significant deficiencies in the governance of JTSF.

Scope

The review considers the extent to which the arrangements for the administration and governance of PECRS and JTSF comply with best practice.

In doing so: 

• it considers the States’ response to recommendations made by my predecessor; and
• recognises that much of the best practice published by the UK Pensions Regulator is specific to UK pensions legislation that is not replicated in Jersey.

Conclusions

In 2008 the deficiencies in the governance of JTSF were only just beginning to be addressed. There has been significant progress in response to the then C&AG’s 2008 report.

The governance arrangements of PECRS compare well against UK best practice. The planned reforms to PECRS will enhance those arrangements.

However, there are some areas where further improvements could be secured in the governance of both schemes.