The government has no intention to make people who continue to work after retirement age contribute to the National Insurance Fund.
This is in spite of the fact the Manx fund would receive an additional £1.9 million in Class 1 National Insurance Fund Contributions (NICs) if it were to bring this forward.
Alex Allinson, minister for the Treasury, said that 700 individuals would be liable if the exemption were removed in answer to a written question from Douglas North MHK John Wannenburgh.
In August 2015, the Treasury consulted on proposed changes to National Insurance for workers over State Pension Age.
The responses to this were ‘not positive,’ said Dr Allinson.
He added: ‘After consideration of the many comments received against the proposal, the economic climate and the practice regarding neighbouring jurisdictions at the time, Treasury decided not to introduce immediate change to NICs for workers over state pension age.
‘Further analysis has since been carried out.
‘It is clear that a relatively small number of individuals, approximately 700, who have reached State Pension Age, and are employed, would be liable to pay NICs if the exception were removed.
‘A significant number of these people are in vital roles such as education and health and therefore it is imperative that any decision does not have an adverse economic impact.’
Individuals who are self-employed and over state pension age would generate further revenue in respect of Class 2 and Class 4 NICs, however, ‘Treasury has no means to calculate the additional revenue this would generate’, says the minister.
Dr Allinson said: ‘It does not seem equitable that individuals who chose to remain in work pay NICs without receiving additional state pension or access to contributory benefits. At this time, Treasury therefore does not intend to further consult on paying NICs for individuals over state pension age.’