Vol. 543 No. 4
134 Mr. Bell asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the anomaly which exists whereby an insured worker at 66 years of age can work and receive old age pension and at 65 years of age the same arrangement does not apply; and if he will make a statement on the matter. [27308/01]
140 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs the cost of reducing the qualifying age for contributory old age pension and for non-contributory old age pension to 65 years of age. [27417/01]
I propose to take Questions Nos. 134 and 140 together.
My Department has two contributory pension schemes, retirement pension payable from age 65 and old age contributory pension payable from age 66. The retirement pension was introduced in 1970 for contributors who retired at age 65. The pension was designed to bridge the gap between retirement and the qualifying age for old age pension, which at that time was 70 years of age. Eligibility for retirement pension is conditional on a person being fully retired from employment and or self-employment. A person is regarded as being retired if his or her earnings from employment or self-employment are less than £30 per week or £2,500 per annum respectively.
My Department is currently reviewing the qualifying conditions for old age contributory and retirement pensions and the first phase of this review was published in August 2000. Phase 2 of the review, currently under way, is looking at the structure of the retirement and old age contributory pension schemes, including an examination of the qualifying ages for both schemes. It is expected that the phase 2 report will be completed shortly.
The estimated cost of reducing the qualifying age for old age contributory pension to 65 years is £57 million per annum – 72.38 million. The equivalent cost for old age non-contributory pensions is £33 million – 41.9 million. Any knock on effects to other parts of the social welfare system would increase the costs further.
