Dáil Éireann debate -
Tuesday, 26 Nov 1996

Vol. 472 No. 1

Written Answers. - Social Welfare Benefits.

Seamus Brennan

Question:

261 Mr. S. Brennan asked the Minister for Social Welfare if his attention has been drawn to an anomaly where a person on retirement pension between the ages of 65 and 66 is prevented from earning over £2,600 from self-employment or over £30 per week if an employee, if the person is to continue receiving a retirement pension up to the qualifying date for an old age pension; his views on whether this regulation unfairly discriminates against a person who has the opportunity to supplement pension income at a time when the person's previous income level is dramatically reduced; and if he will make a statement on the matter. [22466/96]

Seamus Brennan

Question:

262 Mr. S. Brennan asked the Minister for Social Welfare the number of people on retirement pension in each of the years from 1994 to date; the cost of eliminating the income restrictions for persons in receipt of retirement pension, thereby bringing the rules into line with those applicable for old age pension; and if he will make a statement on the matter. [22467/96]

Minister for Social Welfare (Proinsias De Rossa)

It is proposed to take Questions Nos. 261 and 262 together.

One of the conditions for qualification for retirement pension, which is payable at age 65, is that the person retires from insurable employment, other than employment which is insurable only for occupational injuries benefit. This condition has been in force since the pension was first introduced in 1970 and is considered to be reasonable.

The old age contributory pension which is payable at age 66 has no retirement conditions attached to it.

The cost of eliminating the retirement condition and effectively reducing the old age pension age to 65 is estimated at £30 million in a full year, not including the additional cost of free schemes.

The National Pensions Board in its final report Developing the National Pension System considered that a standard age for both retirement and old age pensions should be 65 years. However, because of the costs involved they considered this to be a low priority.

The numbers in receipt of retirement pension at the end of 1994-95 and the end of September 1996 are as follows; 1994, 62,211; 1995, 65,761; 1996, 68,753 at end of September 1996.