Dáil Éireann Debate, Wednesday - 11 May 2011
96 Deputy John Lyons asked the Minister for Social Protection the steps she is taking to deal with potential difficulties arising from persons whose compulsory retirement age in their place of employment will apply in advance of the minimum age of qualification under the contributory State pension once the IMF-EU requirements in relation to the raising of pension age are phased in. [10824/11]
Amharc ar fhreagraThe challenges facing the Irish pension system are significant. In particular, the task of financing increasing pension spending will fall to a diminishing share of the population. There are currently six workers for every pensioner and this ratio is expected to decrease to less than two to one by 2050.
Increasing State pension age is one of the ways in which we can sustain the pensions system and also maintain the value of the State pension at 35% of average earnings. Therefore, as announced as part of the National Pensions Framework, State pension age will be increased gradually to 68 years. This will begin in 2014 with the standardisation of the State pension age at 66 and will be increased to 67 years in 2021 and to 68 in 2028. As agreed under the EU/IMF Memorandum of Understanding, these changes will be provided for in legislation by mid 2011.
Given the changes to State pension age outlined in the Framework, both employees and employers must be encouraged to change their attitudes to working longer. In the workplace, employers must seek to retain older employees and create working conditions which will make working longer both attractive and feasible for the older worker. Where this is not possible and people leave paid employment before State pension age, they will be entitled to apply for another social welfare payment until they become eligible for a State pension, as is the current situation.
The Department of Social Protection operates a range of employment support measures designed to encourage and support social welfare recipients of working age to reduce their dependency on welfare payments. While the primary responsibility for job creation rests with the Department of Enterprise, Trade and Innovation, this Department already has a role in supporting people from welfare to work. The National Employment Action Plan process is a key element in addressing the progression needs of those on the Live Register. It provides a stimulus to job search and affords an opportunity to explore, under professional guidance, the full range of employment and training services offered by FÁS.
