In January, Allinson outlined plans to bring forward a “double lock guarantee” for those who retired after 5 April 2019 as part of the 2025-26 budget to preserve the National Insurance (NI) Fund.
Under the “triple lock” principle, which is currently applied, the state pension sees increases each year in line with the higher of UK CPI inflation, average earnings, or 2.5%.
But a report released in October forecast the NI Fund would be exhausted by 2047-48 if that system continued to be followed.
Ahead of Tuesday’s debate, Allinson said he “had to respond to the needs and the wishes” of the MHKs who had raised concerns about a lack of consultation with politicians and the public and and the timeframe of the changes.
A proposed 4.1% rise in both the basic state Retirement Pension and Manx State Pension will now be put forward as part of the budget instead.
The future of the National Insurance scheme will now be debated in April.
The Isle of Man Budget 2025-26 will be delivered by Allinson at 10:00 GMT on Tuesday in the Tynwald Chamber before being debated by politicians.
