Citation, commencement and interpretation

1. This Order may be cited as the Social Security (Isle of Man) (No. 2) Order 1989 and shall come into force on 2nd November 1989.

Modification of the Social Security Act 1975 and the Social Security Act 1986 and variation of the Principal Order

2. The Social Security Act 1975 and the Social Security Act 1986 shall be modified and the Principal Order shall be varied so as to give effect to the Principal Agreement as amended by the Agreement set out in the Schedule to this Order, so far as the same relate to England, Wales and Scotland.

Article 2

SCHEDULE

No. 1THE SECRETARY OF STATE FOR SOCIAL SECURITY TO THE LIEUTENANT-GOVERNOR OF THE ISLE OF MAN19th October 1989

Sir,

I have the honour to refer to the Agreement on Social Security between the Secretary of State for Social Services and the Department of Health and Social Services for Northern Ireland, of the first part, and the Lieutenant-Governor of the Isle of Man with the advice and consent of the Isle of Man Board of Social Security, of the second part, which entered into force on 1st January 1978 (which in this letter is referred to as "the Principal Agreement") and to recent discussions between the Department of Social Security and the Department of Health and Social Security of the Isle of Man, concerning the need to amend the Agreement so as to make provisions on personal pension schemes.

I now have the honour with the concurrence of the Department of Health and Social Services for Northern Ireland, to propose the following amendment to the Principal Agreement:After Article 3 there shall be inserted:-

"3A. Either Party may:-

(a)pay minimum contributions to the trustees or managers of a personal pension scheme treated under the Acts as an appropriate scheme and in respect of which an appropriate scheme certificate is in issue; and

(b)make incentive payments to an occupational pension scheme which is a contracted-out scheme under the Acts and has become so with effect from any date after 31st December 1985 up to and including 5th April 1993, not having been contracted-out previously within that period.".

If the foregoing proposal is acceptable to you, I have the honour to propose that this letter and your reply to that effect shall constitute an Agreement between us which shall enter into force on31st October 1989.

Gillian Shephard

• for the Secretary of State

• for Social Security

No. 2THE LIEUTENANT-GOVERNOR TO THE SECRETARY OF STATE FOR SOCIAL SECURITY23rd October 1989

Sir,

I refer to your letter of 19th October 1989 which reads as follows:

[This letter here sets out the text of No. 1]

With the advice and consent of the Department of Health and Social Security of the Isle of Man, I have the honour to confirm that the foregoing proposals are acceptable to the Government of the Isle of Man, and agree that your letter and this reply shall constitute an Agreement between us which shall enter into force on the 31st October 1989.

L. A. W. New

• Lieutenant-Governor

The Department of Health and Social Security consents to the foregoing Agreement.

J. A. Brown

• Minister for Health and Social Security

Explanatory Note

(This note is not part of the Order)

This Order gives effect to an Agreement made between the Secretary of State for Social Security with the concurrence of the Department of Health and Social Services for Northern Ireland of the one part and the Lieutenant-Governor of the Isle of Man of the other which permits each party to the Agreement to pay minimum contributions to personal pension schemes and to make payments to occupational pension schemes in the territory of the other party.