A check of the Government fund from which pensions are paid out to public sector workers has revealed that it is lagging behind what will be required in future years.

Steps have already been taken by Finance Minister Paula Cox to pick up some of the shortfall by increasing the level of contributions being paid by public service employees, as well as boosting the amount of public money added through the Government?s own contributions.

In a statement Ms Cox pointed out the Government is continuing to grapple with an inherited problem that dates back to the late 1970s when public service workers were first required to make contributions to their future pensions at a rate of only one percent of their pay.

This was stepped up to five percent of earnings by 1982 when the Public Service Superannuation Fund was created.

In 1986, and against the recommendations of an actuary, the Fund was used to start paying pensions even though it was not believed the Fund had grown enough at that time to allow profit monies to be skimmed off to pay pensions at that stage.

As of the end of March this year the Fund stood at $380 million, representing an increase in size of $69 million since the last full statement of assets conducted two years ago and which was placed before the House of Assembly last Friday.

Ms Cox said it was the Government?s policy to address the ?unfunded liability? ? that is the money for benefits to be paid out in future years but not covered by current assets within the Fund. As such contributions from public sector employers and from the Government both increased in April this year.

The Minister said: ?This decision was taken once we had the results of a special actuary study that was commissioned to assist in formulating a funding strategy to place the Fund on a more firm footing. ?This action clearly illustrates the Government intention to address this problem on a proactive basis and not shrink its responsibilities.?

She said that was only the first step and the Government would continue to take the appropriate action to ensure the Fund remains viable in the long term and pensions continue to be paid. Shadow Finance Minister Pat Gordon-Pamplin said: ?The excuse that payments were made from the Fund before it matured against the advice of the Actuary when the Fund was initially set up has been addressed in every report of the Fund.

?The Government therefore had a perfectly crafted blueprint on which to build their approach towards this Fund, but they have failed miserably.?