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Public Sector Staff Retirements

Dáil Éireann Debate, Wednesday - 20 February 2019

Wednesday, 20 February 2019

Questions (239)

Catherine Martin

Question:

239. Deputy Catherine Martin asked the Minister for Employment Affairs and Social Protection if those in the public sector who were set to retire at 65 years of age would be entitled to jobseeker's allowance until they reach 67 years of age in view of the changes to the compulsory retirement age in December 2018; and if she will make a statement on the matter. [8725/19]

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Written answers

The Social Welfare and Pensions Act 2011 provided that State pension age will be increased gradually to 68 years from its current age of 66. The first increase to 67 years of age will occur in 2021 and the second to 68 years of age in 2028. The purpose of these changes is to make the pension system more sustainable in the context of increasing life expectancy. This has significant implications for the future costs of State pension provision which are currently increasing by roughly €1 billion every 5 years.

The age at which employees retire is a matter for the contract of employment between them and their employers. Where a person exits the workforce before reaching State pension age they may apply for either the jobseeker’s benefit (JB) or jobseeker’s allowance (JA) schemes. Jobseeker’s payments are paid to eligible jobseekers aged 18 to 66 years subject to them satisfying the rules of the schemes. Where qualified, these recipients may continue to be eligible for that payment until reaching pension age.

The Public Service Superannuation (Age of Retirement) Act 2018 announced by my colleague, the Minister for Finance and Public Expenditure and Reform, last year provides that most public sector employees who were recruited before 1 April 2004, other than designated uniform grades and who did not reach their compulsory retirement age of 65 before 26 December 2018, now have a new compulsory retirement age of 70. People who joined the public service before 1 April 2004 previously had to retire at age 65. Now they can choose to work to age 70 on existing terms and conditions, subject to the normal standards of health and performance that apply to all staff. Any person who chooses to retire before 70 may be entitled to support under the jobseekers schemes or the State pension as theretofore.

I trust that this clarifies the matter for the Deputy.

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