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BBC News
13-02-2025
- Business
- BBC News
Isle of Man: 'Triple lock' to stay for Manx pensioners in 2025
Catherine Nicoll BBC News, Isle of Man BBC People who receive state pensions in the Isle of Man will see their payments increase 4.1% - in line with the UK's "triple lock" principle - from April, the government has confirmed. Treasury Minister Alex Allinson had outlined plans to bring forward a "double lock guarantee" for those who retired after 5 April 2019 as part of the 2025-26 budget to preserve the National Insurance Fund. But those plans had faced criticism from several MHKs, prompting the minister to agree to separate the changes from the budget debate itself. A motion on the island's National Insurance scheme is now set to be tabled for April. A revised Manx State Pension was introduced by the Treasury in 2019 and it has been applied to those who retired after 5 April that year. The proposed changes would only have affected those retirees, with anyone receiving payments prior to that continuing to receive the UK percentage uplift to the basic Retirement Pension. While the "triple lock" ensures increases are based on the higher of UK CPI inflation, average earnings, or 2.5%, the "double lock guarantee" would be based on either Manx inflation or 2%. A report published in October forecast the island's £1.09bn NI Fund would run out by the 2047-48 financial year. But in a debate in the House of Keys on Tuesday, concerns were raised over a lack of consultation with politicians and the public over the changes and the inclusion of the measures within the budget itself. Allinson said that, after listening to the comments, it was "clear that more time is needed to ensure there is consensus around the best way to secure our NI Fund and protect pensions in the future". "I will be working with Tynwald Members over the coming months to establish a public consultation so all views can be heard and a sustainable policy agreed," he added. The proposed 4.1% rise in both the basic Retirement Pension and Manx State Pension will now be put forward as part of the Isle of Man Budget 2025-26 instead.
BBC News
11-02-2025
- Business
- BBC News
Manx state pension proposals 'not discriminatory', minister says
Plans to remove the "triple lock" system for some Manx state pensions are not discriminatory under the Equality Act, the treasury minister has were raised in the House of Keys that changing the system for those who retired after April 2019 would be to introduce a new calculation for annual state pension uplifts to preserve the National Insurance Fund were outlined in Minister Alex Allinson said there was a need to "regain control" over the uprating of the basic pension and the proposals did comply with the Equality Act. Under the current "triple lock" system the state pension increases each year in line with CPI inflation, average earnings, or 2.5% - whichever is a report, published in October, forecast that the £1.09bn fund would be exhausted by 2047-48 if that mechanism was retained. 'Bedrocks of the welfare state' The proposed change would see pensions rise by either 2% or inflation, whichever was higher, in what Allinson said was a Manx pension "double lock guarantee".It would be applied to anyone who reached state pension age after 5 April a number of politicians voiced concerns that the changes were unfair for a specific group of people. Ramsey MHK Lawrie Hooper asked how treating "different pensioners differently advances equality of opportunity".Onchan member Julie Edge also raised fears that the legislation would be discriminatory for those people reaching Manx state pension age immediately after the cut off Douglas Central MHK Chris Thomas asked whether the Treasury minister had taken legal advice, as "there are fundamental differences between the UK and here".However, Allinson said the act "expressively permits differences of treatments in certain circumstances", and there needed to be a change in policy over said: "It cannot be the case that the government is bound to continue providing it or indeed any other thing or service."If we do nothing the National Insurance Fund, which is one of the bedrocks of our welfare state, will run out." Read more stories from the Isle of Man on the BBC, watch BBC North West Tonight on BBC iPlayer and follow BBC Isle of Man on Facebook and X.
BBC News
31-01-2025
- Business
- BBC News
isle of Man state pension proposal 'guarantees' future of fund
Replacing the "triple lock" state pension for some Manx residents would "guarantee the long-term sustainability" of the National Insurance Fund, the treasury minister has proposed change, set to be applied to about a third of pensioners on the island, would see payments rise by 2% or inflation each year, whichever figure was Allinson said the move would be "a way of taking control of our pension schemes" and would provide "certainty" to those who retired after 5 April switch will form part of the Isle of Man Budget measures to be put forward for approval in February. The £1.09bn fund is topped up annually with money left over after contributions from workers have been used to pay for the majority of benefits and state a report released in October forecast, if the system remained, the fund would be exhausted by 2047-48, 'Decades-old problem' Increases are currently based on a formula adopted in the UK that increases pensions annually by the highest of three options, namely 2.5%, CPI inflation, or average wage approved by Tynwald, people who retired after 5 April 2019 would see their state pension rise by the higher of either the Manx CPI inflation figure issued in the previous September or 2%.Allinson said the change would "address a decades-old problem" and if no alternations were made there would "be no money in the fund to act as a buffer" in new Manx Pension Guarantee, was "a way of taking control of our pension schemes" and ensuring those eligible "get a decent pension that corresponds to cost of living on the Isle of Man rather than in the UK".This would give retirees "certainty their pension will go up every year" and "guarantee the fund will be there to look after them in the future", he added.
BBC News
29-01-2025
- Business
- BBC News
Plans to scrap Isle of Man 'triple-lock' state pension uplift
Plans to "triple lock" uplift to state pensions on the Isle of Man be scrapped in a bid to preserve the National Insurance Fund have been £1.09bn fund is topped up annually with money left over after contributions from workers have been used to pay for the majority of benefits and state a report released in October forecast the fund would be exhausted by 2047-48, partly due to people claiming state pensions for longer, if the system change, which would affect those who reached state pension age after 5 April 2019, would see pensions rise by 2% or inflation each year, whichever figure was higher. The proposed change will be part of the Isle of Man Budget measures to be put forward for approval in new Manx Pension Guarantee would see payments to those who reached pension after the 2019 date rise by 2.2%, reflecting the most recent Manx inflation rate, and grow from £12,558 to £12,831 for the 2025-26 born before that date would see a 4.1% increase, with payments uplifted from £8,814 to £9,175 across the same period before the Manx Pension Supplement is added for those increases under the "triple lock" principle are based on a formula adopted in the UK that increases pensions annually by the highest of three options, namely 2.5%, CPI inflation, or average wages increases. 'Intergenerational fairness' The Treasury said the change, which would not affect the majority of pensioners, would ensure the fund was "sustainable and sufficient" to cover future benefits and pensions demands. The department has also proposed it should never fall to less than twice the annual Minister Alex Allinson said the revised scheme was "about intergenerational fairness, and accommodating the needs of today's children and grandchildren".He said the changes would allow pensioners would benefit from "the certainty of knowing that their income will rise each year to match changes in the cost of living".They would also mean the fund would "remain in a healthy and sustainable condition" and "able to provide both for their pensions and for those who retire in the future", he approved by Tynwald during the budget-setting process next month, the changes will come into effect in April.
