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Reciprocal Agreement with the UK

Since 1948 the Isle of Man (IOM) and the United Kingdom (UK) have operated a reciprocal agreement, The Social Security (United Kingdom) Order 1977, covering both National Insurance Contributions (NIC) and contributory benefits (the Agreement).

The effects of the Agreement are to:

  1. Treat the two separate social security schemes as one so that an individual moving between the two countries would be able to maintain entitlement to certain contributory benefits, namely State Retirement pension, Jobseekers Allowance and Incapacity Benefit
  2. Treats the IOM and the UK as a single area for liability to NIC

Alteration with effect from 6 April 2016

A new reciprocal agreement, The Social Security (Reciprocal Agreement) (United Kingdom) Order 2016, removes state pensions from the 1977 agreement for those individuals who reach state pension age on or after 6th April 2016. This is necessary because the Isle of Man did not introduce a Single Tier Pension in April 2016 when the UK did so. The 2016 Agreement also covers voluntary National Insurance contributions.

The main effect of the new agreement is that people reaching state pension age after the 6th April 2016 who have paid NICs in the UK and NICs in the IOM are required to make separate pensions claims to each country. More information regarding this can be found on the Social Security Division's webpage under the heading Pensions.

Regarding voluntary NICs, there is now the ability to apply to pay voluntary contributions to improve pension entitlement in one country while paying compulsory contributions to the other country, so building up pension entitlement in both countries. However voluntary contributions cannot be paid to both countries at the same time. This brings the reciprocal agreement with the UK in line with reciprocal agreements with other countries regarding voluntary contributions. Details on Social Security reciprocal agreements with other countries can be found on the Social Security Division's webpage under the heading Reciprocal Agreements with other countries.

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