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Invalidity Pension

Dáil Éireann Debate, Tuesday - 22 September 2020

Tuesday, 22 September 2020

Ceisteanna (535)

Seán Sherlock

Ceist:

535. Deputy Sean Sherlock asked the Minister for Social Protection if, in the event that the State pension is not payable until 67 years of age, eligibility for the invalidity pension will rise accordingly and persons currently in receipt of an invalidity pension will remain on same until pension age; and if she will make a statement on the matter. [25310/20]

Amharc ar fhreagra

Freagraí scríofa

Invalidity pension (IP) is a payment for people of working age who are permanently incapable of work because of illness or incapacity and who satisfy the pay related social insurance (PRSI) contribution conditions.

Those in receipt of the personal rate of invalidity pension at pension age generally transfer automatically to the State pension (contributory) at the full payment rate. Should pension age change, a person in receipt of invalidity pension would continue to receive that payment until pension age.

The Social Welfare and Pensions Act, 2011 provided for increases to the State pension age to make the State pension system more sustainable as life expectancy increases. This began in January 2014 with the abolition of the State Pension (Transition). This measure standardised the State pension age for all at 66 years. The legislation provided for increases to the State pension age - to 67 in 2021 and further to 68 in 2028.

The public policy and social issues in relation to funding a sustainable and adequate State pension system are complex. Therefore, in line with the Programme for Government, a Commission on Pensions will be established to examine a range of issues including contributions, calculation methods, sustainability, eligibility and intergenerational fairness. The Terms of Reference for the Commission on Pensions are currently being developed and options for its membership are being considered. Proposals will be brought to Government in that regard as soon as possible. Once it has concluded its deliberations, the Commission will report to Government by June of next year.

The Programme for Government also sets out how the planned increase in the State pension age next year will be deferred and legislation to this end will be introduced later this year.

I hope this clarifies the matter for the Deputy.

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