Plans to increase the pension age for some States of Guernsey workers from 65 to 70 have been scrapped.
A new pension deal, proposed by Unite, has been approved following a long running-dispute over public sector pensions between the union and the States of Guernsey.
States employees will also now continue to receive lump sum payments upon retirement. This was another change which had been proposed by the States of Guernsey.
Peter Huges, the secretary for Guernsey's Unite, says the new pension deal is good news for the workforce.
Deputy Jonathan Le Tocq from Policy & Resources Committee says he is pleased an agreement between the union and States had been reached.
The process of reforming public sector pension arrangement began in 2011.