The government is preparing to launch a three month public consultation exercise, on controversial plans to overhaul public sector pensions in the Isle of Man.

It's being suggested the 15 different arrangements which operate at present should be unified into a single, final salary scheme.

Public sector workers, notably in the health service, say they are against any loss of benefit or increased contributions.

But the government is warning public service pensions cost ?38 million a year, and with the figure rising annually, something has to be done.

James Davis reports (text, below, from attached audio file):

The government's message is a stark one - unless the pensions bill can be brought under control, there could be tax increases, public spending cuts and possibly the need to draw on government reserves.

Independent consultants Hymans Robertson, briefed to find a solution, suggested a unified, final salary scheme for all the Island's 7,500 public servants, excluding the police, teachers and the judiciary.

The Council of Ministers has described the system put forward as simpler, affordable, sustainable and tailored to the Island's requirements.

All interested parties are invited to take part in the consultation.

The Council of Ministers has promised recommendations will only be put to Tynwald when that is complete, in July.

(Image: Three Legs of Man on the wall in Central Government Offices).