Dáil Éireann Debate, Thursday - 5 December 2013
131. Deputy Michael Healy-Rae asked the Minister for Social Protection her views on correspondence (details supplied) regarding the abolition of the transition pension; and if she will make a statement on the matter. [52451/13]
View answerIncreasing State pension age and the abolition of the State pension (transition) are steps that have been taken to ensure the sustainability of pensions into the future. The decision to reform State pension was taken in the context of changing demographics and the fact that people are living longer and healthier lives. These changes are already provided for in legislation. The Social Welfare and Pensions Act, 2011 provides that State pension age will be increased gradually to 68 years. This will begin in 2014 with the standardising of State pension age for all at 66 years and the cessation of State pension transition. The State pension age will then increase to 67 years in 2021 and to 68 years in 2028.
It should be noted that until the 1970s, the standard age for receipt of State pension was 70 years of age. This applied at a time when longevity was much lower and working patterns were more likely to be physically demanding. State pension (transition) was introduced in 1970 when it was known as the retirement pension. It was designed to bridge the gap between the standard social welfare pension age, which at that time was 70 years of age, and retirement age. Over time, the age for State pension contributory was reduced to 66 years. The retirement condition associated with State pension transition has been criticised as a barrier to working.
The Deputy may wish to note that a significant number of people coming on to State pension (transition) in 2012 did not come from work as many were already on other social welfare schemes. In December 2012, there were approximately 14,400 State pension (transition) claims in payment and of those, just 12.5 per cent came from work with over 50 per cent coming from other social welfare schemes such as illness benefit, jobseekers benefit and assistance, invalidity and carers, indicating that significant numbers of people are leaving the workforce for a variety of reasons well in advance of State pension age. In terms of social welfare supports available to those at age 65, all short term social welfare schemes are payable to age 66.
