Proposed New Pension Scheme to Provide Greater Pension Freedoms

Closed 15 Sep 2017

Opened 18 Jul 2017

Feedback Updated 20 Feb 2018

We Asked

Our consultation paper proposed the introduction of a new pension scheme which would extend pension freedoms. The document set out the main features of a proposed new scheme, posed a number of questions and invited feedback and suggestions on the proposals.

You Said

We received 68 responses from interested parties. The majority were in favour of a fully flexible scheme or a degree of pension freedom.  

We Did

Following the consultation period, we reviewed the responses and gave further consideration to the proposals in light of the comments received. Subsequently, certain features of the proposals were amended while others were retained. Legislation providing for the introduction of a new pension scheme was then drafted and formed part of the 2018 Budget. If approved by Tynwald at the February sitting, pension providers on the Island will be able to introduce the new pension scheme from 6 April 2018.

Results Updated 20 Feb 2018

Files:

Overview

This consultation proposes the introduction of a new tax-efficient pension scheme that would provide its members with greater pension freedoms.

It sets out the main features of the scheme being proposed and includes examples comparing existing schemes with the proposed new scheme. It also poses a number of questions and invites feedback and suggestions on the proposals.

Why We Are Consulting

In July 2015 Tynwald approved a motion supporting the concept of pension freedoms and in the 2016 Budget a number of pension freedoms were introduced.

Since that time Treasury and the Department of Economic Development have continued to work with the pensions industry and other interested parties to find the best way to introduce further pension freedoms in the Island.

Treasury would now like to gain feedback on the proposals in order to help make informed decisions regarding the way forward.

Areas

  • All Areas

Audiences

  • Elected members - MHKs
  • Elected members - local government
  • Employees
  • Older people
  • Self-employed
  • Retired
  • Business owner

Interests

  • Policies, strategies & plans
  • Pensions