MOVES to pave the way for an increase in the state pension age were made in Tynwald today (Tuesday).
Social Care Minister Chris Robertshaw MHK successfully tabled two orders which would allow for women’s state pension age to be gradually increased to 65 by October 2018 and to 66 for both men and women by October 2020.
He said the orders did not amend Isle of Man legislation but that he would be tabling a motion that would do this in due course, in order to remain in line with the reciprocal agreement with the UK. The UK changed its legislation on the issue in November.
Mr Robertshaw’s Douglas East colleague Brenda Cannell questioned why, when the legislation was not yet in force in the island, that he had chosen to introduce the orders. She raised the issue of whether a previously promised review of the reciprocal agreement on pensions was still on the table.
Mr Robertshaw said the introduction of the orders, eventually into law, would do nothing to prevent Tynwald looking at a non-reciprocal arrangement in future. But he said at present the reciprocal arrangement did exist and had to be catered for.
He said the island would spend in the region of £158 million this financial year on pensions and benefits, which was about 38 per cent more than was being spent five years ago. The burden, he said, was rising by approximately £11m/£12m annually and that, by extending the retirement age, government was protecting the size of the state pension as well as protecting upcoming generations’ pension payments.
‘The process of extending the pensionable age as life expectancy increases is the right thing to do,’ said Mr Robertshaw, who received unanimous support for the orders.