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'Simplified' pension system on the way

by isleofman.com 8th December 2008
Members of Tynwald have been briefed on reforms to the state pensions system, including the idea of linking payments with rises in average earnings.

There are also plans to change the rules regarding the number of years which must be worked to qualify for a full pension.

For people reaching the required age after April 6, 2010 the number of qualifying years will be reduced to 30 years for men and women, from the current periods of 44 and 39 years respectively.

Health Minister Eddie Teare (pictured) told Manx Radio it should be a simpler system:

"Under current legislation, a person has to accumulate a minimum of 25 per cent of either 44 years or 39 years to qualify for a pension of any sort.

"Now a pension will be calculated on the basis of 30 years, so even if a person has worked for only one year they will get one 30th of the basic state pension.

It's a very complicated subject, but in some respects the new structure will make it a bit more simple, and easier to understand."

More on Monday's Mandate.

Posted by isleofman.com
Monday 8th, December 2008 07:59pm.

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