IT should not be the role of the States to provide personal pensions or annuities for Islanders, says Treasury Minister Terry Le Sueur.
He says the government does not have the expertise and cannot do as good a job as commercial pension providers.
Senator Le Sueur was responding to a suggestion from a specialist that following the withdrawal of Norwich Union from the Channel Islands pensions and annuities market, and in the absence of any other provider, the States could step in to create this provision.
Ian Morris, a partner at Guernsey-based actuaries BWCI, suggests that it would be possible for a government-backed insurer to write compulsory purchase annuities.
Writing in the January BWCI newsletter, he says: ‘This may be seen as controversial.
However, in each island there are entities administering pensions for civil servants and there are social security schemes in each Island paying pensions.
Thus the governments in each island already have significant exposures to financial and mortality risks similar to those for an insurer writing annuity business.
As reported earlier this month Norwich Union, the only remaining providers of insured personal pensions and annuities in the islands, have decided to close to new business, although they have agreed to defer their withdrawal until 1 June.
Representatives from the UK company are due to meet States politicians and officers on Monday.
Article posted on 31st January, 2007 - 12.00am
Most Commented: