Is It Fair?

The Treasury Minister has rejected suggestions that Manx workers who have only ever been employed in the island are at a disadvantage compared to those eligible for two state pensions.

Chris Thomas MHK was responding to a question in Tynwald from Julie Edge, who raised “equality concerns” regarding people who can only receive a single Manx state pension, while some individuals with contributions in both the Isle of Man and the UK can claim both.

Mr Thomas explained that the 2016 reciprocal agreement between the Isle of Man and the UK effectively ended the aggregation of National Insurance contributions for those reaching state pension age on or after April 6 2016.

Divorced

“Put simply, as regards the state pension rights of people who reach state pension age on or after April 6 2016, we are divorced from the United Kingdom,” he said.

He confirmed that individuals who have spent their whole working life in the island with 35 qualifying years will receive a full Manx state pension.

“Mr President, I do not believe this issue gives rise to any equality concerns,” he added.

Mrs Edge raised the possibility of reviewing the Manx supplement, which was introduced before the 2016 changes, for those reliant solely on the Manx pension.

Mr Thomas noted the next Government Actuary’s Department review is due in 2027.

He also confirmed the number of island residents receiving both pensions is unknown, as individuals are not required to declare it unless claiming income support.