Dáil Éireann Debate, Tuesday - 22 September 2020
23. Deputy Claire Kerrane asked the Minister for Social Protection the status of plans to legislate for the State pension age increase to be deferred and remain at 66 years of age; the timeframe for the legislation; and if she will make a statement on the matter. [25248/20]
Amharc ar fhreagraI want to ask the Minister the status of plans to legislate for the deferral of the State pension increase to 67 years of age.
I thank the Deputy for raising this issue. The Programme for Government: Our Shared Future states that the planned increase in the State pension age next year will be deferred. This will require an amendment to primary legislation and the Government will bring the necessary legislation before the Oireachtas later this year. I hope there will be cross-party support for this legislation.
The public policy and social issues in regard to funding a sustainable and adequate State pension system are complex. There are very diverse views on how the pensions system should develop. In the interests of older people and future generations of older people, we are taking a fresh look at the issues involved. That is why the programme for Government also commits to establishing a commission on pensions to examine a range of issues including contributions, calculation methods, sustainability, eligibility and intergenerational fairness. The terms of reference for the commission are currently being developed and options for its membership are being considered. I will bring proposals to the Government in that regard as soon as possible.
To be absolutely clear on this, the State pension age will not increase to 67 years in January 2021. People who are approaching the age of 66 should apply for the contributory or non-contributory State pension in the normal way. I will conclude by restating my view that the State pension is the bedrock of the pension system in Ireland. It is extremely effective in ensuring that our pensioners do not experience poverty. The Government is committed to ensuring that this remains the case. I hope this clarifies the matter for the Deputy.
Gabhaim buíochas leis an Aire. Even at this stage I have received correspondence from people approaching 66 years of age next year. We know that in normal circumstances, people approaching pension age have to apply for the payment three months before turning 66 years of age. I recently spoke to a gentleman who is turning 66 next April and who has been told he cannot apply for the State pension because the legislation has not been sorted out yet. There seem to be difficulties for a number of people and they are unsure of what is actually happening.
I appreciate that the legislation will come before the Dáil before the end of the year. Can the Minister give further clarity on when that will happen? Will it happen after the budget? The Minister referenced the membership of the commission on pensions. Can she give more detail about that membership and with whom she is consulting on that issue?
I am working on the legislation and it is my intention to bring it to the House before the end of the year. I am aware of those who will become 66 years of age on 1 January and I want to make sure that they get their full entitlements when they reach that age in order that they will get their pensions. As I said, we are working on that at present.
In respect of the commission on pensions, I have been working with my officials and must bring a memo to Government on that particular matter. It will examine a number of issues. I have to agree that with my Government and Cabinet colleagues before I can give any further information.
Following on from that, as the membership has not yet been agreed and the Minister has to bring a memo to Cabinet, which I appreciate, given the timeframe in the programme for Government is she confident that the commission will be able to report by June next year? When does she envisage the first meeting of the commission's membership will take place? It is very important that she has a representative for employees on the commission, be it a trade union or similar representative. It is important that the voices of workers are heard.
I refer to the commitment in the programme for Government to change the name of jobseeker's allowance or benefit to an early retirement allowance or pension. We have to acknowledge that while that might look good, it is the same as the jobseeker's payment and is paid at the same rate. The Minister must acknowledge that for people who have worked since perhaps 15 years of age and have paid PRSI for 30, 40 or 50 years, it is an insult to give them €203 per week. The Minister must also acknowledge that is a hard pill to swallow for workers who have given and contributed so much in their working lives.
As I said, the commission on pensions will examine the issue in the round and will consider a wide range of issues including contributions, calculation methods, sustainability and intergenerational fairness. In terms of its membership, it is important that we have a broad mix of individuals with expertise in pensions, economics, labour market dynamics and industrial relations, as well as stakeholder representatives.
I will bring the proposal to Government to establish the commission as soon as possible and it will report back to Government with recommendations by, it is to be hoped, the end of June next year. That is the intention. There is quite a body of work and I am asking a lot of the commission. The report is expected by June, but we want to give the commission the flexibility to allow it to do the necessary work.
