Part No. 1 THE SECRETARY OF STATE FOR SOCIAL SECURITY TO THE LIEUTENANT-GOVERNOR OF THE ISLE OF MAN

19th 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