THE Isle of Man would have to follow the UK if the Westminster government introduces radical plans to change pensions, the Manx government confirmed this morning.
The UK government recently announced its proposals, as part of a draft bill, to reform the state pension by replacing the basic state pension, the state additional pension and certain other state pension payments with a single-tier pension.
The proposals would introduce a single-tier pension of at least £142.70 per week and people would be paid a full pension if they had paid or been credited with National Insurance contributions for at least 35 years.
This would affect only people reaching state pension age on or after April 6, 2017.
If the Isle of Man maintains its reciprocal agreement with the UK, it would need to introduce the single tier pension at the same time as the UK.
Minister for Social Care Chris Robertshaw MHK said: ‘The Isle of Man is just about to commence a welfare reform project which, among other things, will consider whether maintaining the current reciprocal agreement with the UK would be the most beneficial form of agreement for the Island in the future. The outcome of this review will determine whether we will have to follow the UK and introduce the single tier pension.’
More on this story in Monday’s Isle of Man Examiner