Dáil Éireann Debate, Wednesday - 20 February 2013
152. Deputy Catherine Murphy asked the Minister for Social Protection if she will confirm that interim arrangements are in place for persons who must retire at age 65 and who no longer can avail of a transition pension; and if she will make a statement on the matter. [9135/13]
View answerThe Social Welfare and Pensions Act 2011 provided for changes to State pension provision. SPT will cease to be paid from 2014 which will standardise the payment of pension at age 66. In addition, the age at which State pension (contributory) (SPC) will be payable will increase to 67 years from 2012 and to 68 years from 2028. The State pension (transition) (SPT) is paid for a maximum of 12 months and is available to people who retire from work on reaching age 65 provided they satisfy the necessary PRSI contributions criteria and that they do not work for that one year between age 65 and 66.
Figures indicate the numbers applying for SPT from employment are low. In 2011, 12,052 SPTs were awarded. The total number of SPT recipients in 2011 was 12,110. This compares to 296,995 recipients of SPC in 2011. Of the SPTs awarded in 2011, 1,478 (12.3%) were awarded SPT directly from employment while almost half, 5,850 (48.5%) were already in receipt of another social welfare payment. A person who retires from work on reaching age 65 and who does not have sufficient PRSI contributions to qualify for SPT may apply for another social welfare payment, depending on their individual circumstances.
Raising State pension age and the abolition of SPT is a necessary step in ensuring the sustainability of pensions into the future and to address the challenges of changing demographics such as increasing life expectancy. It is important that those who need to or wish to continue in employment after State pension age should, as far as is possible, be facilitated and supported. Longer working can play an important role in ensuring that our pensions system is sustainable in the future and it can also be beneficial to the individual.
