Dáil Éireann Debate, Thursday - 3 February 2022
320. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which a smooth transition exists for persons who have not yet reached qualification age for the State pension but who have ceased employment due to the nature of their contract; if the present regime is adequately sensitive to ensure that they are not forced to apply for unemployment assistance; and if she will make a statement on the matter. [5745/22]
View answerIn February 2021, I introduced the "Benefit Payment for 65 year olds" in line with the Programme for Government commitment, to provide a benefit payment for people who are aged 65 and who are required to retire, or who chose to retire, without a requirement to sign on, engage in activation measures or be available for and genuinely seeking work. This new payment was designed specifically to bridge the gap for people who retire from employment or self-employment at 65 years of age but who do not qualify for the State Pension until age 66.
The Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund, in fulfilment of a Programme for Government commitment. The Commission was an independent body comprised of knowledgeable and experienced academics, pension experts, members of civil society and representatives of workers and employers. Once it completed its work and fulfilled its obligations, the Commission was dissolved. The Commission's Report was published on 7th October 2021. The report, Technical Sub-Committee's working papers and submissions made to the Pensions Commission are available on the website, pensionscommission.gov.ie.
The Pensions Commission’s Report is a comprehensive report that takes account of an assessment of various analyses of population, labour force and expenditure projections; an examination of international approaches; and responses to an extensive consultation process. It has unambiguously established that the current State Pension system is not sustainable into the future and that changes are needed, and it has set out a wide range of recommendations in this regard including aligning retirement ages in employment contracts with the State Pension Age. The Commission also presented an option to allow people with a long contribution history of 45 years to access the State Pension (Contributory) at age 65. The Commission’s Report stated that this should be implemented in the context of an increase in the State Pension Age.
The report was referred to the Joint Committee on Social Protection, Community and Rural Development and the Islands for its views which were published yesterday. Separately, as set out in its terms of reference, the Commission on Taxation and Welfare is considering the report of the Pensions Commission in the context of its review of potential changes to the social insurance system.
In the interests both of older people and future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically. My officials are currently examining each of the recommendations, their implications, and what would be required to implement them. They are consulting across Government through the Cabinet Committee system. I think it is really important that we complete that work and get those views before reaching conclusions on any of the specific recommendations. Once that is done, I intend bringing a recommended response and implementation plan to Government by the end of March 2022.
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. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
I hope this clarifies the matter for the Deputy.
