1. ITV Report

IoM new state pension for April 2019 approved

Photo: PA images

The Isle of Man's Parliament of Tynwald has approved legislation for the introduction of the new single-tier Manx state pension in April 2019.

It will apply to people who reach state pension age on or after 6th April 2019.

The full rate of the new Manx pension will be around £180 a week when it is introduced. To qualify for the full rate, a person will need to have at least 35 qualifying years of National Insurance contributions in the Isle of Man.

People who have collected significant amounts of additional state pension under the current earnings-related scheme will have those rights protected.

Treasury Minister Alf Cannan MHK says the new Manx state pension will be "affordable for at least the next 70 years." Credit: ITV Granada

Residents who have been contracted out of the state additional pension scheme for long periods are unlikely to receive the full amount.

However, IOM Treasury says they will not receive any less under the new scheme than they would have under the existing scheme.

Those retiring who have paid NI contributions in the UK will most likely be entitled to a separate state pension from the UK authorities. Employers and employees who currently pay reduced rates of contributions will have to pay the same rates as those who are currently not contracted out

Existing pensioners and those who will reach state pension age before 6th April 2019 will not be affected by these measures. They will continue to receive their pensions based on the current rules.

The new Manx state pension is being introduced with two primary aims. Firstly to ensure the long-term viability of the Manx National Insurance Fund, so that we can afford to pay state pensions for at least the next 70 years. And secondly to provide for a simple pension which everyone can understand and can therefore plan for their retirement with a degree of certainty.

– IOM Treasury Minister Alf Cannan MHK