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State Pensions

Dáil Éireann Debate, Wednesday - 9 September 2020

Wednesday, 9 September 2020

Questions (196)

Róisín Shortall

Question:

196. Deputy Róisín Shortall asked the Minister for Social Protection if the qualifying age for the State pension will not rise to 67 in 2021 as per the programme for Government commitment; and if she will make a statement on the matter. [22879/20]

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Written answers

The Social Welfare and Pensions Act, 2011 provided for increases to the State pension age to make the State pension system more sustainable as life expectancy increases. This began in January 2014 with the abolition of the State Pension (Transition). This measure standardised the State pension age for all at 66 years. The legislation provided for increases to the State pension age - to 67 in 2021 and further to 68 in 2028.

This Government is acutely conscious of the need to consider the sustainability of the State’s finances. However, this is not the only consideration when thinking of the State pension age. The State Pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. The Government is committed to ensuring that this remains the case.

The public policy and social issues in relation to funding a sustainable and adequate State pension system are complex. Therefore, a Commission on Pensions will be established to examine a range of issues including contributions, calculation methods, sustainability, eligibility and intergenerational fairness. The Terms of Reference for the Commission on Pensions are currently being developed and options for its membership are being considered. Proposals will be brought to Government in that regard as soon as possible. Once it has concluded its deliberations, the Commission will report to Government by June of next year.

In the meantime, the Programme for Government also sets out how the planned increase in the State pension age next year will be deferred and it will remain at 66 years pending the report of the Commission on Pensions. I will introduce legislation later this year to do that.

I hope this clarifies the matter for the Deputy.

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