17 October 2018
The Minister for Social Security, Deputy Judy Martin, has today (17 October 2018) published an independent report on the financial outlook of the Long Term Care Fund, which provides financial support to households that have long term care needs.
The findings of the report, by actuaries Aon Hewitt, are consistent with the predicted shortfall announced by the previous Minister for Social Security, Deputy Susie Pinel. The report covers the 25 year period from 2018 - 2043 and shows that:
- costs are expected to grow more quickly than income, in line with the number of older people, particularly those aged 80 years and above
- the current contribution rate of 1% will need to increase steadily over the next 25 years, with the first rise of 0.5% recommended in 2020
The need to adjust the Fund’s benefits and contributions is in line with research undertaken before the Scheme started; this is the first review of the Long Term Care Fund since it launched in 2014.
Deputy Martin said: “I welcome this independent report, the first since the Scheme started, and am pleased to see that the fund is performing as expected following the research already carried out.
“To ensure that the Fund can continue to provide support to households in the future, it’s likely that I will include a 0.5% increase in the long term care contribution rate in the 2020 Government Plan, which will be debated by the States next September.”
Long Term Care Fund Review
gov.je