Ending contracting-out of the State Second Pension

Our consultation paper sought the views of employers and scheme trustees who operate contracted-out pension schemes, and the views of employees who are members of such pension schemes, as to how Treasury could minimise any adverse impact that the ending of the current contracted-out arrangements may have.  The consultation asked a number of questions and invited comments and suggestions on the proposals.

We received a total of 33 responses from a variety of interested parties. Of these, some responded to the questions raised in the consultation document while others commented more generally on the subject.  It was noted from a number of responses received from individuals who are currently members of contracted-out schemes that some are not aware of how contracting-out affects their entitlement to the current state pension. 

Following a review of the responses received, Treasury proposes that the procedures for scheme reconciliation that were adopted in the UK will also be adopted in the Island.  This will minimise the cost and administrative burden for schemes and for the Treasury.  In addition, Treasury will work with schemes to ensure that members are made aware of their contracted-out periods and how this will affect their entitlement to the new Manx pension. 

Results Updated 8 March 2018

The response document is provided below and includes a summary of the responses made to each question and of the other comments received.