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People Reaching State Pension Age on or After 6 April 2016

State retirement pension is changing for people who reach state pension age on or after 6 April 2016 and who have paid NICs in both the IOM and the UK. Please download Leaflet RM2 for more information.

People who have paid National Insurance contributions only in the IOM are not affected.

Categories of State retirement pension

  • Category A is based on your NICs or, in respect of certain divorces and civil partnership dissolutions, on the NICs of your former spouse or civil partner.
  • Category B is payable to married women, civil partners, widows and widowers based on the NICs of their spouse or civil partner; and
  • Category D is a non-contributory pension payable to certain people who reached age 80 before 6 April 2016.

Basic qualifying condition for people reaching state pension age on or after 6 April 2016

To qualify for State retirement pension you must have paid, or be treated as having paid, in the Isle of Man:

  • At least 50 Class 1, Class 2 or Class 3 NICs before 6 April 1975

  • At least 50 Class 2 or Class 3 NICs or earned 50 times the lower earnings limit in any one tax year in the 3 years between 6 April 1975 and 5 April 1978 and paid Class 1 NICs on those earnings

  • 52 Class 2 or Class 3 NICs or earned 52 times the lower earnings limit in any one tax year from 6 April 1978 and paid Class 1 NICs on those earnings

To qualify for a 100% Category A State retirement pension you need to have at least 30 qualifying years in the Isle of Man in your working life. 'Qualifying years' are those in which you have paid or been credited with enough NICS for State retirement pension purposes.

A reduced rate pension will be paid if you have less than 30 qualifying years but at least 1 qualifying year in your working life.

Different rules apply if you reached state pension age before 6 April 2016.

Amount you could receive and how you're paid

State retirement pension consists of different components:

  • Basic Pension - based on the number of IOM qualifying years you have in your working life. You need at least 30 qualifying years for a full (100%) basic pension
  • Additional Pension (AP) - based on your earnings since 6 April 1978, provided you were not contracted-out of SERPS (State Earnings Related Pension Scheme) or since April 2002 the State Second Pension (S2P)
  • Graduated Retirement Benefit - based on the NICs you paid between 6 April 1961 and 5 April 1975

Your State retirement pension can be paid every 4 weeks directly into your bank or building society account or you can collect it in cash at a Post Office each week.

See Benefits Rates for further information regarding how much an eligible individual could receive.

Pension top-up

Pension top-up is paid to certain people who reach state pension age on or after 6 April 2016 who get both an IOM and a UK state pension because they paid or were credited with National Insurance contributions (NICs) (or are treated as such) in both the IOM and the UK.

You can get a pension top-up if the total amount of IOM and UK state pensions you get added together is less than the amount of IOM state pension you would have got if you had reached state pension age before 6 April 2016.

In both cases 'IOM state pension' includes any Manx Pension Supplement. Please download PTU2 - Pension top-up for more information.

UK state pensions

If you have paid or been credited with NICs in the United Kingdom (or if you are treated as such) you will need to make a separate claim for your UK state pension.

Please note that the State Pension Age for the purposes of the UK State Pension is higher for men and women born on or after 6 April 1960 than it is for the Isle of Man Retirement Pension. You can check when you will reach State Pension Age for the purposes of the UK State pension.

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