Vol. 525 No. 2
723 Mr. McCormack asked the Minister for Social, Community and Family Affairs if the clause relating to people aged 65 years retiring from full-time work and their capacity to only earn £2,500 will be amended in the Budget. [23880/00]
Until the 1970s the qualifying age for old age pensions was age 70. In 1970, the retirement pension (RP) was introduced for contributors who retired at age 65. Eligibility for this pension at age 65 is conditional on being fully retired from employment and/or self-employment. A person is regarded as being retired if his/her earnings from (a) employment are less than £30 per week and (b) self-employment are less than £2,500 per annum.
The old age (contributory) pension (OACP) becomes payable at age 66 and there are no earnings limits associated with this payment for the pensioner. Significantly increasing, or eliminating, the earnings threshold for RP would, in effect, reduce the qualifying age for OACP to 65 and could have significant cost implications.
My Department is currently reviewing the qualifying conditions for old age contributory (OACP) and retirement pensions (RP). The report on the first phase of this review was published recently. Changes to the schemes in question will be considered in the context of the second phase of this review which will get under way in the next few months.
