End of contracting out 'a trade-off'

Treasury minister discusses new Manx pension structure

The Treasury minister says thousands of public sector workers in the Island facing higher National Insurance deductions, will be rewarded with an enhanced state pension

Alf Cannan has launched proposals to end the scheme which allows employers and their staff to pay reduced NI rates because they're in occupational pension schemes.

It applies to the public sector and some private firms. 

The government says when a new, single-tier Manx State Pension comes into force in 2019, there will no longer be any reason for 'contracting out'.

Those affected could face a 1.6% increase in NI contributions. 

Mr Cannan is urging them to see the change as a trade-off for a better pension later on: