07 June 2023
The Government has released independent actuarial reports which show the Social Security Funds continue to be in a good position.
The Minister for Social Security regularly commissions independent actuarial reviews of the Social
Security Fund, Health Insurance Fund and Long-Term Care Fund. Reports written by the UK
Government Actuary’s Department and Aon describe the current condition and financial outlook of
these funds.
The Social Security Fund remains in good health. At the end of 2021 it had a balance of £2.3bn
which was higher than expected, and the financial projections have improved since the last review
at the end of 2017. It is expected to be able to pay benefits for at least several decades under a
range of scenarios, with investment performance for this Fund better than projected in the previous
review.
The Health Insurance Fund reserves have increased over the last four years but are projected to
decline over the next two decades with an ageing population. These projections are better than
the previous ones in the 2017 actuarial review and will help inform the Government’s review of
healthcare funding.
The Long-Term Care Fund has grown since the States Assembly increased the long-term care
contribution rate by 0.5% in 2020. As a result, it is now in a significantly better position with a more
positive outlook than at the time of the previous review. The actuary’s projections show the Fund
balance growing and then decreasing gradually over the next 15 years.
The Minister for Social Security, Deputy Elaine Millar said: “These reports show that despite
unanticipated disruptions over the last few years, both the Social Security and Health Insurance
Funds remain in a good position. I am pleased to say that, as anticipated, the Long-Term Care Fund
has grown since the last review and will continue to grow for the next seven years. There is no need
to increase the contribution rate again now, but the timing of any future increases will be
important to make sure they are fair to future generations.
“These reviews will feed into our strategic policies when considering access to healthcare and
our ageing population to help ensure that support is in place for Islanders for many years to
come.”
Assistant Minister for Treasury and Resources, Deputy Steve Ahier said: “These reports demonstrate
that these Funds remain in a healthy position, with improved projections since the previous reports.
These will inform Ministers and other States Members on the decisions for the next Government
Plan and help implement a roadmap for sustainable financing of our future healthcare and social
provision”.
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