Manx State Pension Reforms

Manx State Pension Reforms

Please note: the proposed reforms will not affect anyone who is already in receipt of a state retirement pension, nor anyone who will reach state pension age before 6 April 2019

In July 2015 Tynwald approved a set of recommendations which resulted in the Isle of Man (IoM) and the United Kingdom (UK) having different state pension provisions in respect of people reaching state pension age on or after 6th April 2016. Existing pensioners up to that date are not affected by this, and will continue to receive their state pensions under the provisions which applied before 6th April 2016.

In March 2016 Tynwald approved a new Social Security agreement with the UK which means that anyone who has worked in both the IoM and the UK will be entitled to separate state pensions from the IoM and the UK. Respective pension entitlements will be based on the National Insurance contributions which have been attributed to each country.

The UK have, from 6th April 2016, introduced a new 'single-tier' State Pension, whilst the IoM has kept the state pension provisions which were in place prior to 6th April 2016. However, the IoM is committed to introducing a new Manx Pension, designed specifically for the IoM’s needs, which it is hoped will be introduced from April 2019.

At the July 2016 sitting Tynwald approved the Treasury’s proposals which will form the foundation of the new Manx State Pension. The document setting out those proposals is available to download from this page (see opposite). Those proposals had been formulated following workshops that had been held with Tynwald Members and which resulted in Treasury commissioning the UK Government Actuary’s Department to do additional option testing. The results of that additional work are available to download from this page (see opposite).

Answers to a number of frequently asked questions about the new Manx Pension proposals and how they may affect you are provided in the last of the downloadable documents opposite.