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State Pension Age to Increase 18 November 2009 Press Release Between 2010 and 2020 the women’s state pension age on the Island will gradually increase from the current 60 years to 65 years. This change was initiated by the UK Government through the Pensions Act 1995. As the Island’s state pension arrangements are linked with those of the United Kingdom’s, through the social security reciprocal agreement, the change has also been applied on the Island. Women born between 6th April 1950 and 5th April 1955 will now have a state pension age of between 60 and 65 years, determined by their date of birth. All women affected by this change have been contacted by the DHSS and have been provided with an information leaflet showing the earliest date from which they may be entitled to a state pension. Women born on or after 6th April 1955 will now have the same state pension age as men. State pension age also determines when entitlement to certain other social security benefits begins and ends. It is also the point from which a person is no longer liable to pay National Insurance contributions. Therefore, women whose state pension age is greater than 60 years and who continue working beyond their 60th birthday will still be liable for National Insurance contributions until they reach state pension age. State pension age will increase again for both men and women born on or after 6th April 1959. Between 2024 and 2046 it will gradually increase to 68. Commenting on the issue, Member of the Department with special responsibility for Social Security, Bill Henderson, M.H.K., said “These changes have been applied to the Island under our reciprocal arrangements with the United Kingdom. These arrangements are important as they allow people who move between the Island and the UK to contribute to the same state pension. The changes are necessary to ensure that state pensions continue to be affordable in the long term and are consistent with the fact that people are, on average, living longer. They also have regard to women’s changed roles in the workplace. Of course, reaching state pension age doesn’t mean that a person has to retire from work – that is a matter of personal choice. State pension can be paid to a person who has reached state pension age and continues to work.” Mr Henderson went on to say “As well as increasing state pension age, further changes have been agreed to make state pensions more generous and widely available, though these changes only apply to people who will reach state pension age on or after 6th April 2010. These include a reduction in the number of qualifying years required to be entitled to a full basic state pension from 44 for men and 39 for women to 30 for all” 1. A total of 2,597 women with dates of birth between 6th April 1950 and 5th April 1955 were identified from DHSS records. 2. A similar mailshot exercise is being conducted by the Department for Work and Pensions in the United Kingdom. 3. State pension age will increase gradually from 65 to 68 between 2024 and 2046 as follows: • People born between 6th April 1959 and 5th April 1960 will have a state pension age (SPA) of between 65 and 66 years; • People born between 6th April 1960 and 5th April 1968 will have a SPA of exactly 66 years; • People born between 6th April 1968 and 5th April 1969 will have a SPA of between 66 and 67 years; • People born between 6th April 1969 and 5th April 1977 will have a SPA of exactly 67 years; • People born between 6th April 1977 and 5th April 1978 will have a SPA of between 67 and 68 years; and • People born on or after 6th April 1978 will have a SPA of exactly 68 years. More stories >>>
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