Pension supplement row reignited

The war of words between the Government and pensioners’ association, IOMPA, has recommenced following a series of radio interviews and press releases issued by the opposing parties.

IOMPA are claiming that the DHSS appear to have dismissed out of hand, without having properly consulted with them, the most recent IOMPA proposal to resolve this issue. IOMPA had proposed the lifting of the age restriction for making the necessary payments, to overcome the arbitrary 10 year contribution qualification, which would enable people to qualify for the Manx pension supplement.

DHSS Minister, Eddie Teare MHK, has stated in a press release, issued by the Department, that agreeing to IOMPA’s proposal would be “tantamount to taking funds from the next generation.”

IOMPA has responded by calling Mr Teare’s words as “sanctimonious” and query what the ‘plundering’ of £44m from the National Insurance fund to help pay for the new Nobles Hospital represents.

Both sides question each others figures and the likely cost of providing the supplement to the pensioners currently not in receipt of the payment.

Mr Teare claimed in a Manx Radio interview that it will cost an additional £14m; a figure IOMPA dispute.

IOMPA regularly point out that the people in receipt of the supplement have not paid any more NI over their working life than those not receiving the payment; it is just an issue of where the NI was paid.

IOMPA also claim that a large proportion of the ‘surplus’ in the NI fund, which is a result of investment growth, is on the back of the money paid in to the fund by the UK government to pay the pensions of UK pensioners living here.

IOMPA have previously campaigned, based on the reasons stated above, that a 10 year residency qualification should be applied rather than the current 10 year ‘contribution’ rule. This suggestion was rejected by Tynwald; so IOMPA now feel as though they may have no other option than to pursue the issue through the Courts.

Spokesman, Richard Leventhorpe informed Manx Radio that IOMPA members would now have to consider this option as a two tier society is being created in the Island which, in their view, is probably a breach of the Human Rights Convention.