Michael Healy-Rae
Question:488. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the position regarding pensions (details supplied); and if he will make a statement on the matter. [37200/12]
View answerTuesday, 18 September 2012
Questions (488)
Written answers
The increase in State Pension age to 67, as provided for in the Social Welfare and Pensions Act 2011, is to take effect from 1 January 2021. Current public servants who are obliged to retire at age 65 in 2021 will be able to draw their public service occupational pension at age 65.
For public servants on modified PRSI, the change in State Pension age will have no effect on their pensions. But a fully insured public servant (i.e. paying full PRSI) has a pension which, like many other occupational pension schemes, is co-ordinated with social welfare benefits. The public service pension paid is therefore integrated with the pensioner’s social welfare benefits, which have been contributed to over the pensioner’s working life by the employer as well as the pensioner. This means the occupational pension paid is based on the assumption that the pensioner also receives the State Pension (Contributory).
Where this does not happen a discretionary supplementary pension may be payable under the relevant public service pension scheme to bridge the gap. One of the conditions for payment of a supplementary pension is that the pensioner, through no fault of their own, does not qualify for Social Welfare benefit or qualifies at less than the maximum personal rate. It is therefore necessary to claim any available Social Welfare benefits (and not only the State Pension (Contributory)) in order to receive a supplementary pension.