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Pension Provisions

Dáil Éireann Debate, Tuesday - 12 June 2012

Tuesday, 12 June 2012

Ceisteanna (40)

Mary Lou McDonald

Ceist:

129 Deputy Mary Lou McDonald asked the Minister for Social Protection if she intends putting any provision in place, other than jobseeker’s benefit, for the 14,000 65 year olds affected by the rise in the retirement age in 2014 with the abolition of the State pension transition which will leave many without a job or a pension when their employment contracts end short of them reaching the new retirement age of 66 years. [28040/12]

Amharc ar fhreagra

Freagraí scríofa

Social structures in Ireland are changing rapidly and the structures of our social support need to change to accommodate this. The decision to increase State pension age was taken in the context of changing demographics and the fact that people are living longer and healthier lives. The standardisation of State Pension age to age 66 is one of the measures planned which aims to improve the sustainability of the Irish pension system.

The responsibility for setting retirement age in employment in the private sector is a matter for the individual and the employer under the contract of employment. Overall State responsibility for employment matters is held by my colleague, Mr Richard Bruton, the Minister for Enterprise, Trade and Innovation.

However, my Department is working with the relevant agencies of State who have a role to play in identifying and breaking down barriers to remaining on in work past the age of 65.

In 2011, 26,000 (approx.) new State pension (contributory) payments were awarded with 9,000 (approx.) transferring from State pension (transition). It should be noted that of these, less than one quarter were in employment at the time of the award of the transition payment with almost half being in receipt of another social welfare payment at the time of the award.

For those who are affected by this change, some may be able to remain in work until age 66 while others may be able to avail of a social welfare payment where there is an income need.

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