Denis Naughten
Ceist:129 Mr. Naughten asked the Minister for Social and Family Affairs further to Question No. 742 of 28 September 2005 if this report has been completed; and if he will make a statement on the matter. [3656/06]
Amharc ar fhreagraThursday, 2 February 2006
Ceisteanna (133)
Freagraí scríofa
The national pensions review was completed by the Pensions Board in November 2005 and published on 17 January 2006. In the context of the issues raised by the Deputy in Question No. 742, the Pensions Board has recommended that retirees should be offered the option of deferring drawing their social welfare pension in exchange for a larger pension starting at a later date. A very approximate calculation indicates that deferring a pension from age 65 to 70 could allow a pension from the later age that would be one third higher than the entitlement at 65, or a little over 6% for each year that payment is deferred. The Pensions Board has also raised the possibility of combining this with social insurance contributions made after 65/66 years of age to improve a person's basic pension entitlement.
In principle, I support allowing people to improve their social welfare pension entitlements through further employment or deferring payment. However, such arrangements do give rise to very practical issues in the operation of occupational defined benefit schemes, which are generally integrated with the social welfare pension. It is likely to be some time before the necessary infrastructure is in place to support a system on the lines suggested by the Pensions Board but I will be keeping the matter under review.