Richard Bruton
Question:65 Deputy Richard Bruton asked the Minister for Social Protection the details of the implementation of the national pensions framework; and if he will make a statement on the matter. [21625/10]
View answerTuesday, 25 May 2010
Questions (49, 50, 51)
Written answers
The recently published National Pensions Framework is the Government's plan for pension reform. It encompasses all aspects of pensions, including social welfare pensions, private occupational pensions and public sector pension reform. Development of the framework was informed by the range of views raised during the comprehensive consultation process which followed publication of the Green Paper on Pensions. The aim of the framework is to deliver security, equity, choice and clarity for the individual, the employer and the State. It also aims to increase pension coverage, particularly among low to middle income groups and to ensure that State support for pensions is equitable and sustainable.
A technical implementation group has been established to develop the legislative, regulatory and administrative infrastructure required to put the reforms into operation. In line with the Government decision, the group which is chaired by the Department of Social Protection, held its first meeting in early May. The implementation phase is expected to take three to five years. The implementation group is cognisant of the current and emerging economic condition and will conduct extensive consultation on the many aspects of the framework before presenting final options to Government for decision. The group will develop a communications strategy to ensure that all stakeholders and interested parties are kept informed of the progress being made in implementing the framework.
James Bannon
Question:66 Deputy James Bannon asked the Minister for Social Protection his views on whether persons face the prospect of spending up to three years in retirement without the State pension in view of the national pensions framework announced by him; and if he will make a statement on the matter. [21620/10]
View answer
Brian O'Shea
Question:295 Deputy Brian O’Shea asked the Minister for Social Protection the proposals he has to abolish the State transitional pension; and if he will make a statement on the matter. [21405/10]
View answerI propose to take Questions Nos. 66 and 295 together.
The challenges facing the Irish pension system are significant. In particular, the task of financing increasing pension spending will fall to a diminishing share of the population. There are currently six workers for every pensioner and this ratio is expected to decrease to less than two to one by 2050. Increasing State pension age is one of the ways in which we can sustain the pensions system and also maintain the value of the State pension at 35% of average earnings. People are living longer and healthier lives with average life expectancy set to rise even further in the future, up to 89 years for women and 83 for men. People will still, therefore, be spending at least the same amount of time in retirement as they are today, even with a later State pension age.
Therefore, as announced as part of the National Pensions Framework, the State pension age will be increased gradually to 68 years. This will begin in 2014 with the removal of the State pension (transition), thereby standardising State pension age at 66. This means that the last group of people to receive the State pension (transition) will be those who reach 65 years of age in 2013. State pension age will be increased to 67 years in 2021 and to 68 in 2028. The details and timeframes for these changes are set out in the National Pensions Framework, which was published on 3 March 2010. An implementation group chaired by my Department has been established to develop the legislative, regulatory and administrative infrastructure required to put the necessary reforms into operation.
In addition to the changes being made to State pensions, both employees and employers must be encouraged to change their attitudes to working longer. At the workplace level, employers must seek to retain older employees and create working conditions which will make working longer both attractive and feasible for the older worker. Where this is not possible and people leave paid employment before State pension age, they will be entitled to apply for another social welfare payment until they become eligible for a State pension, as is the current situation.
Question No. 67 answered with Question No. 48.
Question No. 68 answered with Question No. 62.
Question No. 69 answered with Question No. 43.