Thursday, 21 November 2019

Ceisteanna (245)

Dara Calleary


245. Deputy Dara Calleary asked the Minister for Employment Affairs and Social Protection the plans in place for persons that have to retire at 65 years of age but cannot receive the pension until they are 67 years of age. [48363/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Employment)

The rationale for the increase in the pension age is twofold, first to recognise that due to improvements in health and work conditions people have the capacity and the desire to work beyond what would traditionally have been seen as a retirement age. Second, as life expectancy increases, to help maintain the sustainability of our pensions system. In order to provide for sustainable pensions and to facilitate a longer working life, legislation passed in 2011 provides for an increase in the State pension age in three separate stages. In 2014, the State pension age was standardised at 66. This will be increased to 67 in 2021 and 68 in 2028. Many other EU/OECD countries are making similar provisions. The Roadmap for Pensions Reform 2018-2023 has stated that future changes in State pension age after 2035 will be based on research into life expectancy.

This sustainability is vital, if the current workers, who fund State pension payments through their PRSI, are to receive a pension themselves when they reach retirement age.

In most cases, it is hoped that workers will continue to work up to State pension age, and so the question of claiming a social protection payment would not arise. Where this is not possible and a person ceases their employment before reaching State pension age, they may if they do not find alternative employment apply for either the jobseeker’s benefit or jobseeker’s allowance schemes. Jobseeker’s payments are currently paid to eligible jobseekers aged 18 to 66 years subject to the person satisfying the general scheme conditions. Social Welfare legislation states that jobseeker payments may be made until the person reaches pensionable age provided they satisfy the necessary contribution conditions.

It is important to note that there is no legally mandated retirement age in the State, and the age at which employees retire is a matter for the contract of employment between them and their employers. While such a contract may have been entered into with a retirement age of 65, in the context of the previous State pension arrangements, there is no legal impediment to the employer and employee agreeing to increase the duration of employment for one or more years, if both parties wish to do so. In this regard, the Workplace Relations Commission has produced a Code of Practice on Longer Working and the Irish Human Rights and Equality Commission (IHREC) has published guidance material for employers on the use of fixed-term contracts beyond normal retirement age.

I hope this clarifies the matter for the Deputy.