Government of Jersey

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A decision made on 30 June 2011:

Decision Reference: MD-S-2011-0051
Decision Summary Title :	DS - Comment on P.105/2011		Date of Decision Summary:	24 June 2011
Decision Summary Author:	Policy and Strategy Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR - Comment on P.105/2011		Date of Written Report:	24 June 2011
Written Report Author:	Policy and Strategy Director		Written Report : Public or Exempt?	Public
Subject: States Comment on P.105/2011 – Pensions: Survivor’s Benefit - Review
Decision(s): The Minister decided to present a comment to the States in regard to Senator Le Gresley’s proposition P.105/2011 – Pensions: Survivor’s Benefit - Review
Reason(s) for Decision: Senator Le Gresley has put forward a proposition to request the Social Security Minister to undertake a comprehensive review of survivors’ benefits. The attached comment contains the Social Security Minister’s comments on the proposition.
Resource Implications: None
Action required: Policy and Strategy Director to request the Greffier of the States to arrange for the comment to be presented to the States as soon as practicable.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Pensions: Survivor's Benefit - Review (P105/2011): Ministerial Comment

Comment on P.105/2011 Pensions: Survivor’s Benefit - Review

The Minister for Social Security supports the proposition put forward by Senator Le Gresley to undertake a comprehensive review of survivors’ benefits.

The report accompanying P. 105 correctly notes that “the Minister for Social Security has advised me that, in principle, he agrees that survivors’ benefits are generous and that a review is required"

The report also makes reference to the major review of the Social Security system, Continuity and Change, undertaken in the late 1990s. This review ran over several years and considered all aspects of Social Security contributions and benefits.

As a result of the Fiscal Strategy Review undertaken in 2010, the Department is currently engaged in a major review of contribution liability. A fundamental restructuring of the current legislation will be debated by the States Assembly in July and further significant work which is likely to include public consultation is planned for the next 12 months. The Department is also involved in the Income Support review and the development of a Long Term Care Benefit.

Social Security benefit legislation is complex. Changes to legislation must be carefully planned as they affect a large number of benefit claimants, as well as needing adjustments to computer systems, publicity material, staff training and other operational arrangements.

The suggestion in the report accompanying P.105 that a green paper should be published on this single topic will need to be carefully considered. In order to provide the general public with a realistic range of options and sufficient background information to understand the finances of the Social Security Fund and the relative implications of different proposals, a comprehensive paper should be made available.

The proposition requires a report to the States by 31 March 2012, with proposals for a new scheme to achieve a significant reduction in the current annual expenditure while at the same time honouring the claims of all existing claimants.

It should be noted that reductions in expenditure will take a number of years to reach a significant level if all existing claimants continue to receive the benefit as currently constituted.

It is difficult to give a firm commitment that the Minister elected in November this year will have sufficient time to undertake this work and produce a report in the proposed timescale.