The Treasury has launched a public consultation on a proposal to stop workers being exempted from making National Insurance contributions once they reach state retirement age.

The change would mean that anyone who is employed or self-employed beyond state retirement age would pay National Insurance (NI) in the same way as their younger counterparts.

Ending the age exemption was one of the recommendations from consultancy Ci65 in its report on the challenges facing the Island’s state pensions and benefits system, which is largely funded by NI contributions.

Announcing the proposal in his Budget speech in February this year, Treasury Minister Eddie Teare MHK said: ‘I see no reason why anybody should effectively get a pay rise courtesy of the National Insurance Fund when they reach state retirement age.’

He added that this would be a significant change so it would not be introduced immediately and would be considered over the next twelve months.

The Treasury consultation ‘Proposed Changes to National Insurance for Workers over State Pension Age’ opened yesterday (Wednesday August 19, 2015) and closes on Wednesday October 14. It is available in the consultations section of the Government website – https://www.gov.im/about-the-government/government/government-consultations/