The chairman of Jersey's Life and Pension Society, Ian Shepherd, claims £50m of tax was used to bolster pension benefits in 2002.

Mr Shepherd has also said he believed social security contributions did not reach the level of benefits being paid out.

He was commenting after assurances from the president of the Employment and Social Security Committee, Senator Paul Routier, that pensions would not be at risk until at least 2015.

Living standards

Mr Shepherd the use of such large amounts of tax cannot be sustained in coming years.

He has warned islanders that because of this, pensions may not continue at the same level.

The Employment and Social Security Department said: "People living and working on the island, pay contributions and are covered by certain benefits and a pension.

"The offices of the social security department administer this scheme and in so doing, support people to achieve an acceptable standard of living."