LETTER TO ALL CANDIDATES 2011 ELECTION
You are seeking to represent the people of the Isle of Man in the forth coming General Election.
Members of the electorate are anxious to know your attitude regarding the Isle of Man Pension Supplement and it is the intention of The Isle Of Man Pensioners' Association to publish responses or otherwise to this email in order to assist the electorate in reaching their decision on how to cast their vote.
BACKGROUND
In 1992 there was an increasing surplus in the National Insurance fund on the island. Tynwald commissioned the Chislett Report which in the same year recommended a supplement be paid to all the island's pensioners, subject to a residency qualification to be decided by Tynwald. This was agreed to by the DHSS but was changed so that it depended on 10 years contributions to the island's National Insurance fund, not purely residency as recommended.
When the Isle of Man Pension Supplement was introduced it was £5 per individual and £8 per couple. Following the recent budget the Pension Supplement now stands at £49.85 added to a basic State Retirement Pension of £102.15 per week.
Quite rightly the IOM government promotes this as a very good deal for "our" pensioners compared with the UK.
HOWEVER there are approximately 2,100 pensioners (many in your chosen constituency) who do not get the Pension Supplement despite living here for more than 10 years and having paid their contributions in the UK rather than here.
These people are only getting a basic pension and yet the cost of living is the same for them.
1 Were you aware of the Pension Supplement and how it came about?
2 Are you aware of how many old age pensioners in your chosen constituency do not receive the Pension Supplement? These disadvantaged and second class citizens have contributed extensively to the economy of the Island.
3 Do you think Manx/ UK pensioners should be penalised because their NI contributions were paid in the UK- a situation they had no control over?
4 The Pension Supplement was introduced as a 'cost of living allowance' to prevent pensioners on the island having to claim Supplementary Benefit. Do you think it is right that hundreds of people continue to receive the Pension Supplement when they absent from the island for extensive periods?
5 If elected what will you do to address this situation?
For more in depth analysis see below-
www.isleofmanpensionersassociation.com
REPLIES FROM CANDIDATES up to 270911
Paul Craine 260911 Many thanks for your email on the Isle of Man pension supplement. Apologies for my delay in responding.
Within my manifesto, my comments on pensions are as follows: "As people live longer, we cannot simply expect to have more and more years on a pension. Change is inevitable but it needs to offer a fair deal for all groups. Public sector pensions have rightly been amended. Tynwald members' pensions must also be reviewed. I believe that Tynwald members should be making a contribution towards their pensions."
I recognise that this does not cover the issue in which your are interested. I have some sympathies with the issue you raise and in one discussion on the doorstep I indicated that I recognise that the '10 Years contribution to the Island's NI fund' is an 'all or nothing' situation. I would feel that it would be fairer for a proportion of the supplement to be awarded (i.e. 5 years contribution, 50% of the supplement).
I will attempt to provide an honest and direct response to your five questions, but I'm afraid that these are not five simple. open questions.
1 Were you aware of the Pension Supplement and how it came about?
I was aware of the IOM Pension Supplement (although it is an issue that has been raised no more than 4 of 5 times when I have visited well over 1,700 households). I have not seen a full history of the discussions behind the decision to establish the supplement.
2 Are you aware of how many old age pensioners in your chosen constituency do not receive the Pension Supplement? These disadvantaged and second class citizens have contributed extensively to the economy of the Island.
No. I am not aware of any source from which I could ascertain this number. Do you have this number for the constituency of Middle?
3 Do you think Manx/ UK pensioners should be penalised because their NI contributions were paid in the UK- a situation they had no control over?
This is clearly not an 'open' question. I am not convinced that the lack of a supplement the same as being penalised?
4 The Pension Supplement was introduced as a 'cost of living allowance' to prevent pensioners on the island having to claim Supplementary Benefit. Do you think it is right that hundreds of people continue to receive the Pension Supplement when they absent from the island for extensive periods? I
'm not quite sure what you are trying to get at here - it is one of your aims to reduce pensions (and pension supplement) for anyone who has an extended break off-Island? The people in receipt of an Isle of Man Pension Supplement must be ordinarily resident in the Isle of Man.
5 If elected what will you do to address this situation?
Given the continuing shortfall in the Island's budgets caused by the VAT changes, the priorities for the Island have to be finding new Government income and reducing Government expenditure. I am committed in my manifesto to doing just that. Now is not the time for anyone in Tynwald to be promising additional funds - indeed, it would be dishonest to do so. What is clear is that, at a time when the dependency ratio in the Island is worsening (i.e. there are fewer people of working age that those who are outside the working age groups) and the average age is rising, the Isle of Man cannot afford to offer a policy that appears to attract additional people from the over 65 age groups through a universally available pension supplement. However, I do recognise that the scale of the different treatments of person a) who has completed 9 years 11 months contribution to the Island's NI and person b) who has completed just one month more, could not be described as fair and I would be prepared to challenge that unfairness if the opportunity to do so arose at a time when Tynwald was in a position to find new funds to address this situation.
I hope you will recognise the honesty of my answer even if you do not agree with all of my views.
Ray Harmer 130911 I fully support your aims. I agree the discrimination that currently exists needs to be removed. My view is that a simple and better paid state pension should be made available to all who pass a 5 year residency test, irrespective whether the NI contributions were made to the UK or the Isle of Man. Generally regarding pensions, the government scheme needs to become fully funded. MHKs need to take a lead and have contributory pensions. All Isle of Man workers should have by default a private, government or company pension.
Brenda Cannell MHK 050911 My sincere apologies for not getting back to you sooner, as I am sure that you will appreciate my time is now taken up with canvassing for that important vote in the forthcoming elections.
You may be aware that I supported the retired Members Association over the last term by asking questions on their behalf, the first of which was asked on 17th April 2007 to the Minister of the then DHSS - 'Will you honour the undertaking given by your Department to report back to the Isle of Man Pensioners Association on the findings of the UK Actuary report which your Department commissioned in July 2006?' - the Minister responded in the negative, so much for open and transparent Government.
Also, on the same date I asked the Minister - 'Are you in receipt of the UK Actuary Report commissioned in 2007 to consider the ramifications of extending the Isle of Man pension supplement to those persons currently ineligible, if so, when will your Departments consideration on the findings be made public, and will Members of Tynwald receive a copy of the UK Actuary Report? - he refused to supply Members with a copy.
On the 10th July 2007 I asked a further question - 'How many pensioners are currently in receipt of the Manx Pension Supplement' - 'What proportion of those not in receipt have actually paid into the Manx Fund for varying periods of time since the commencement of the Manx Pension Supplement Scheme?'.
On the same date I asked - ' In respect of the IOM Pensions Associations January 2006 proposal to the Department, how can the Department reach conclusions on pension supplement eligibility when insufficient facts have been given to the UK Actuary's Department?' And - 'With regard to the UK Actuary latest Report on IOM Pensions, why is it reported that 3.9% of contributions received are deducted and paid to the National Health Service, and does the same figure apply in the UK?'.
I have always had the view that there is unfairness in the payment of the Manx Pension Supplement, the principals of which that payment is based on contributions paid in the Isle of Man is supported. however, it is unfair that contributions for a period of less that the prescribed 10 years should be totally disregarded.
This payment should be on a sliding scale to reflect those who have paid in albeit for a lesser number of years.
I have made reference to this in my Manifesto and believe that the scheme should be reviewed. In terms of your point in respect of whether pensioners should continue to receive this payment when they absent from the Island for extensive periods definitely needs to be followed up, if the evidence is available to substantiate this situation.
I hope the above demonstrates that I have supported the Pensioners Association over the last 5 years and if returned to serve in the House of Keys this support will continue.
Keep up the good work and very best wishes
LIBERAL VANNIN 020911 Joint reply on behalf of their candidates: Pat Ayres-Ayre, Kate Beecroft-Douglas South-Juan Cottier-Middle, Nigel Dobson-Garff, Zac Hall-Onchan, Peter Karran MHK-Onchan, Chris Thomas-Douglas West, Linda Bowers - Kasch- Ramsey, Peter Hill-Douglas North-David Jones. Guarantee a fair income for each and every Manx resident at every stage of life .The Manx pension supplement is generous but controversial in payment especially given some long-term residents are excluded and other non-residents are apparently paid it. The opportunity of the UK review of a state pension for the 21st century will be taken to review Manx pension contributions, payments, the Reserve Fund and its financing. An Independent review Committee will be established to report during the first year of the new House of Keys. We would have preferred to be more specific but whilst there are changes underway in the UK we are unable to do so.
Paul Heavey 310811 I have to admit to not realising the pension situation you have brought to my attention and must say it seems grossly unfair that so many people do not receive this supplement. It encourages me to believe that our Island should be reviewing the situation as a matter of urgency, indeed the whole structure of pensions, welfare payments and social support is long overdue. However, I cannot claim to be in any way up to speed on the issue and I need to find time to examine it further. But I can assure you that I stand firm on fairness and if given the opportunity to bring a fairer deal to pensioners, or anyone else for that matter, I will endeavour to bring about the necessary changes.
Juan Watterson 310811 Tick receipt.
Paul Moulton 310811 1. I was aware of it but did not know the history. 2. I do not know the numbers involved. I have met many pensioners whilst going around Douglas East but none have identified themselves to me as not receiving this supplement. 3.The whole issue does need looking at, but no one has raised it with me on the doorstep. 4. As before I do believe the whole issue needs looking at. 5. Vote to have the whole pension reviewed.
John Skinner 310811 I agree with the principle of the "Manx" supplement, however, I am sure you would agree that there are inequalities in many areas in need of review. This issue has not been raised by the electorate I spoken to over the last few weeks.
John McDonough 300811 Firstly, please accept my apologies for not replying sooner, now that my nomination paper is in, and I'm an official candidate, let battle commence. In answer to your questions:- 1, I am aware of the pension supplement, but was not aware of the background. 2, I am not aware of the number of people in my constituency affected by this. 3, No, I do not think the situation is fair. When we moved to in 1979 my mother was 49, and worked well into her 70s, but because much of her work was low paid in hotels and cafes she did not pay N.I. She's contributed to the Island's tourist industry for over 20 years but, through no fault of her own, can't get the supplement! 4, No, I don't think it's fair. 5, In light of the latest VAT bombshell I feel the supplement cannot continue in its present form, maybe it should be phased out, to enable pensioners to all receive the same, somewhere in the middle.
June Kelly 290811 Thank you for bringing to my attention your concerns around The Isle of Man Pension Supplement. Yes, I was aware that there is a difference between the Isle of Man Pension Supplement. However my knowledge is limited. I have said on my manifesto that all pension schemes need to be reviewed with a view to more equality.
Lawrie Hooper 270811Thank you for providing such a wealth of information on the pension supplement. Until reading your e-mail I was unaware that the pension supplement was not universally available. It seems unfair that long term Isle of Man residents are being treated differently depending on where they paid their NI contributions. In principle I agree that a residency based qualification seems more appropriate than the current contribution basis that you describe. However, in light of the tough financial constraints we are facing I think it would be completely irresponsible of me to make promises that might turn out to be false. The matter for how people qualify for the pension supplement, and indeed how people qualify for all benefits, is a matter that needs serious debate by the next government. I apologise for only being able to give you my general feelings on this issue and for not being able to give you a more definitive answer to this rather complex situation. Feel free to contact me at lhooper@live.co.uk if you would like to talk further about any issues that affect you or any of your members that live in Ramsey.
Peter Hill 250811Thank you for your e-mail and questions attached thereto. Please be assured that I will get back to you as soon as possible.
Linda Bowers-Kasch 240811 Tick Receipt.
Geraldine O'Neill 150811 Tick receipt
Chris Thomas 150811 Tick receipt
Matthew Wadsworth 120811 Extensive correspondence
Alf Cannan 100811 The recent events surrounding VAT mean that the new Government will now, in my view, have to undertake a number of reviews including once again a Pensions review in order to clearly ascertain what is affordable in terms of public services and, in respect of pensions, what adjustments need to be made to current contributions in order to ensure that we can continue to provide our pensioners with the money they both deserve and are owed.
There are strong arguments on both sides in respect of the pension supplement but I do understand the call for parity. However, any changes to the existing arrangements will add to the cost of pensions and therefore until a clearer picture emerges as to the impact of the loss of the £175m from Government revenues, I will have to reserve my judgement. I am sorry that I cannot be more direct with you.
What I will say, however, is that I recognise the contributions that our Pensioners have made to society and that I will always be committed to ensuring that Pensioners are looked after in the proper manner.
Geoff Corkish 090811 Thank you for the email and your best wishes. Best regards as always.
Paul Heavey 090811 Tick receipt
Leonard Singer 090811 Thanks for the very useful information in such detail.
David Talbot 080811 Thanks you for your copy letter. I did see an article in the local press in which Alan Bell is reported to have said that the island may have to scrap the 'supplement' in favour of a flat rate of £140. Keep me informed of developments as pensions are a hot subject.
Kate Beecroft 080811 On going correspondence.
Geoffrey Boot 080811 Confidential reply to IOMPA Chairman.
Eddie Teare 080811 You will not be surprised to know that I stand by my previous comments on this matter. I am aware that Mr Berrington, who lives in Ayre, has raised the matter in the media, but the public have not raised the matter on the doorstep.
Brian Stowell 080811 Thanks for your letter and I can confirm that my views are the same as they were in 2006. One pension, the same for all. Any society should measured by the care it gives to the elderly the vulnerable and the sick. Where have we gone wrong when each week a prisoner costs more than 20 pensioners?
Steve Rodan 080811 Many thanks for the copy of the letter which I am pleased to acknowledge. You will recall I have some sympathy with the Association's concerns, and have in the past tried to establish a system of variable rates of Supplement for periods less than the 10-year contribution threshold, and also to allow for voluntary back-payments of contributions to allow those just short to qualify.
Phil Gawne 080811 I support the supplement but agree as you know that it is currently overly discriminatory. I would favour either a 10 year minimum residency before you become eligible or perhaps a part payment for those who have paid in more than say 7 years into our system. The former being my preferred option. Clearly there are issues of affordability associated with this as the current supplement itself is not likely to be affordable in the longer term. Affordability however is not a strong enough reason to maintain our currently overly discriminatory system. The real answer of course is that people of my age and younger will have to work longer before taking their pensions.
Richard Ronan 080811 I acknowledge and thank you for your circular in reference to the Isle of Man Pension Supplement. As I have elderly parents myself I am aware of Pensions and allowances and how much they appreciate what they get. In your Associations case not receiving the supplement I have to agree it is an anomaly and one that has to be further debated in the New House. I take on board what you and your Association are appealing for and if elected will look further into it.
Chris Robertshaw 080811 I need to check to see if the contention that the fund will run down if your proposal is adopted is correct or incorrect and I will try to do that during the next few weeks. The one issue that is very clear is that there is an unfairness here that must be righted one way or another. We also have to watch the impact of the upcoming changes to the UK standard pension as I suspect that there will be a back wash effect here. By that I mean that the group you represent will in practice (after the changes in the UK) be the only one on what might be called the basic pension and that must be wholly anomalous.
Peter Karran 070811 Tick receipt
Allan Bell 070811 Tick receipt
John Orme 070811 I was not aware of this problem. In present financial circumstances I do not believe that it would be wise or particularly honest to promise to seek to increase government expenditure in this area. Is the GAD report available, if so could you send me a copy?
David Pownall 070811 Thank you for giving mailing me this information so that I can formulate a view. I think that Pensioners have been through tougher times than most in our society, and although some may feel that Pensioners should be treated by the book as it were, I think we don't give them enough respect, they in a lot of cases have fought very real wars and lost loved ones and have in many cases have wounds from serving us. Pensioners are not being treated fairly and it's embarrassing, they also in many cases end their days facing four lonely walls being looked after in a lot of cases by staff who can't speak their language. I would do better if elected, and I would say this needs sorting today as these precious people may not have the advantage of long years ahead. I hope this answers your complex question; I can only give you my feelings on this issue at the moment, I would like to take this moment to ask you and your members and Pensioners to attend my talk on Castletown. Castletown election candidate David Pownall is inviting the public of Castletown and the Isle of Man all areas, and also anyone over the age of 16 to attend the Castletown Civic Centre on the 1st and the 15th of September, at 6.30pm, to find out what the public want for Castletown and the Isle of Man, questions can also be sent to dpownall@manx.net or phone 410275.
Anne Craine 070811 Tick receipt
Bill Malarkey 060811 Tick receipt
Nigel Dobson 060811 Tick receipt
Tim Crookall 060811 Tick receipt
Theo Fleurbaay 060811 Tick receipt
John Shimmin 060811 Tick receipt
John Hanson 060811 Tick receipt
Martin Moore 060811 I'm aware of the discrepancies and will be pushing for this issue and related others (including the insulting level of the Carers Allowance) to be addressed as a matter of priority. Unfortunately, I feel the present system is a result of pure and simple electioneering in the past. It is an unjust and iniquitous system which requires a complete overhaul to make it fair and of value to all pensioners. As it stands at the moment it is just blatant discrimination.
David Cretney 060811 Automatic tick receipt
Please note: Emails have been sent to all the candidates who have declared and had published their email addresses on either the Energy FM website http://iomelections.com/2011/candidates.html or the Manx Radio site http://election.manxradio.com/. At present we have not been able to obtain email addresses for Mahendra Patel and Leslie Hanson. If anyone has their published email addresses would you please forward to the IOMPA - iompa@mcb.net