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”.
