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[BBC News] OAPs are 'second class citizens'


spermann

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Announced on the local news today that the supplement is to remain for residents who have worked for 10 or more years. The people who come to the Island to retire seem to be a little upset by this, why? Do they not think that the local workers deserve a little extra in retirement to cover the additional cost of living? These people have afterall worked on the island for at least 10 years therefore putting a little back into the local economy. If i worked for a large proportion of my life on the Island and moved to the UK to retire, i would not get upset by the local pension allowances.

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MANX RADIO LINK TO STORY

 

The DHSS has decided once and for all that qualification for the Isle of Man's pension supplement must be based on contributions to the Manx National Insurance Fund.

 

The Isle of Man Pensioners Association has lobbied for many years for the main criterion to be changed to ten years residency in the Island.

 

However, after taking independent advice, the department has told the association that agreeing to its request would amount to taking funds from the next generation.

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Good editorial in The Examiner - the next thing they should be focusing on is the final salary pension for all government employees

 

 

Be careful. Although its termed a non-contributory pension the civil service pension benefit is a condition of employment and therefore taken into account when negotiating pay awards etc, it is part of the package used to attract employees - just like high salaries, company cars, christmas parties and memberships of health clubs do in some areas of the private sector. It follows therefore that if an employee contribution had been introduced an adjustment to pay would have been needed and the salary bill would increase, and if the final salary pension is lost then some other employemnt benefit would be needed to attract people into this area. Its a lot easier to get rich in the private sector than in the civil service which traditionally has a pyramidical management structure and therefore takes a long time to progress in, and is now reported as suffering from a tendency to import "professionals" into higher management positions thereby limiting the career opportunities for manx people in the civil service.

 

Local Authority employees do make a contribution (a percentage of salary) towards a pension which is presently based on final salary, the difference here is that the pension is funded (that is the administrator has a fund which is intended to meet the future liability of members pensions.) The Civil Service pension is now part funded but as with many govenment pension schemes (including the old age pension) has been funded from tax which is the manner historically used for many areas of government expenditure.

 

The police and fire services retirement provision after 25 years service with a pension is funded by higher contributions by members during the shorter working life.

 

Although not a civil servant I recognise that the pension debate isn't as straight forward as some think and any changes should be carefully considered as there may be further implications.

 

What I do agree with however is the recent decision which started this thread, and particulary the comment that we don't want to encourage pensioners here with a promise of a higher income funded by the working population.

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I can't see the supplement lasting forever. The number of pensioners on the island has increased by 100% in number in 5 short years, what's going to happen in 10, 15 or 20 years?

 

Time for a supplement rethink methinks, as we are likely to be placing ourselves in dire straits in the future, when really we should be banking most of the supplement for future years when the pensioner:worker ratio has dramatically increased - which it will continue to do so. There's likely to be a very high number of poor pensioners in the future, as most current workers don't have the luxury of many pension schemes that previously existed, or have been hammered by the stock market. Milk and honey today only means higher taxes for youngsters in the future.

 

Alternatively - stuff giving out a supplement - let's all retire aged 55 instead!!!

 

Article on MR: IOMPA to fight on.

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I can't see the supplement lasting forever. The number of pensioners on the island has increased by 100% in number in 5 short years, what's going to happen in 10, 15 or 20 years?

 

 

Surely that 100% increase is largely due to new residents who would not be entitled to the supplement?

 

To be honest, the whole pension issue over here needs a radical rethink and action taken BEFORE we get rail roaded into the new UK rules. I will admit that some of the new UK pension rules are acceptible, but some will be very costly. When the UK discover how costly they are they will implement a means testing scheme, which will be catastrophic.

 

The whole pensions issue (long term) could easily be solved if a scheme were implemented whereby at birth, a private pension fund is set up and a one of contribution made by the government. Parents and friends could also contribute. Rather like the current system where the kid gets the money at age 18 so they can buy a car and go out on the piss (although it is supposed to be a sort of college fund). Once the person starts work, payments can continue into the fund. On retirement the person's pension is sorted. No further government involvement required.

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The government treats some pensioners as second class citizens, according to the Manx Pensioners Association.

 

Source : http://news.bbc.co.uk/go/rss/-/1/hi/world/...man/6978023.stm

 

Reading the Examiner it seemed to have been turned down because the government actuary was asked to come up with an estimate of what would be a fair contribution to make up the difference, and having seen the amount the pensioners association turned it down because the cost of that contribution was thought to be too much. On this basis it seems like Eddie was spot on because the increased cost of provision was not going to be matched by what people were perpared or willing to pay in so it looks like the the taxpayer was being asked to pick up the difference.

 

It seems a fair decdision to me.

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Eddie Teare made the right decision.

 

 

""The decision is an injustice - which is causing hardship to one in five of the Island's frailest and most vulnerable people."

 

bit of an alarmist statement

 

I'm I right in thinking that the people who are moaning are no worse of than if they had stayed in the UK?

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A spokesman said: "The present elderly generation - who helped build our current prosperity - are being overlooked."

 

No, the generation who helped build England's prosperity are being overlooked. The generation who built our current prosperity are receiving the supplement.

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