Pension Supplement

What is it?

The Pension Supplement provides an increase to the basic Retirement Pension, long term bereavement benefits and long term Incapacity Benefit (referred to as qualifying benefits). Where the qualifying benefit is Retirement Pension or a bereavement benefit the Isle of Man rates of benefits are 46.355% higher than in the UK. The Pension Supplement is payable at a fixed rate of £40.68 where the qualifying benefit is long term incapacity benefit.

Although this is done by the provision of a separate benefit the Pension Supplement the basic Retirement Pension (or other qualifying benefit) plus supplement should be regarded as an Isle of Man benefit rate.

There is no equivalent to this increase in the UK. For this reason, entitlement depends upon having contributed to the Isle of Man National Insurance Scheme for a minimum number of years.

Basic qualifying condition

To qualify for the payment of the supplement, the following conditions need to be satisfied.

You must:

  • be ordinarily resident in the Isle of Man
  • have attained the age of 45
  • be entitled or treated as entitled to a qualifying benefit from the Department
  • have paid relevant contributions in the Isle of Man for at least 10 years or have paid relevant contributions for at least 5 years and was paying relevant class 1 or class 2 contributions immediately prior to an award of Incapacity Benefit.

Transitional protection for persons resident on the Island on 5 April 1999 permits Isle of Man contribution credits to count towards the 10 year period up to that date.

Qualifying Benefits

You must be receiving 1 of the following benefits or pensions from the Department:

  • Category A or B basic Retirement Pension
  • Widowed Parent's Allowance
  • Long term Incapacity Benefit and (for new claims after 6th April 2008) the higher rate care component of Disability Living Allowance
  • Short term Incapacity Benefit (where that benefit is payable at the long term Incapacity Benefit rate)
  • Widowed Mother's Allowance (transitionally protected cases)
  • Widow's Pension (transitionally protected cases)

Contributions

You are required to have paid full rate contributions as an employed, self employed or non employed person for 10 contribution years in the Isle of Man prior to attaining pension age. Reduced rate contributions paid by certain married women and widows do not count.

For a year to count as 1 of the 10 years, the contributions paid in that year must be of a sufficient level for the year to count as a qualifying year for Retirement Pension purposes. The level is defined and changes each year.

How much could I get and how am I paid?

If you receive a category A or B basic pension or Widowed Parent's Allowance, the rate of the supplement is equivalent to 48.8% of the entitlement to that benefit.

If you receive long term incapacity benefit or short term incapacity benefit payable at the long term rate, the weekly rate of the supplement is fixed at £40.68.

How and when should I apply?

There is no requirement for a separate claim to be made for the supplement. Entitlement will be considered at the same time as entitlement to the qualifying pension or benefit is being considered.

See downloadable documents for more information on the Pension Supplement.

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