Deputy Southern recommends that the ceiling for employer and employee contributions be scrapped from 2005 and the overall contributions increased from 2006.This would transfer the burden of the Social Security Fund, which pays for pensions and benefits, from general tax revenues to contributions and effectively makes the fund self-sustaining.The fund, which pays for pensions and benefits, currently uses £50m a year and has traditionally been made up of one third employers’ contributions, one third employees’ contributions and one third supplementation from States’ taxation revenue.Deputy Southern proposes that the overall contribution rate for employers and employees be increased by one per cent annually – 0.5 per cent each – until the requirement for supplementation is eliminated.
