Dáil Éireann Debate, Wednesday - 9 March 2022
141. Deputy Brendan Smith asked the Minister for Social Protection the timescale for the Government response to the recommendations of the Pensions Commission with particular reference to an essential ending of forced retirement at age 65; and if she will make a statement on the matter. [13162/22]
Amharc ar fhreagraThe Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund, in fulfilment of a Programme for Government commitment. The Commission was an independent body comprised of knowledgeable and experienced academics, pension experts, members of civil society and representatives of workers and employers. Once it completed its work and fulfilled its obligations, the Commission was dissolved. The Commission's Report was published on 7th October 2021. The report, Technical Sub-Committee's working papers and submissions made to the Pensions Commission are available on the website, pensionscommission.gov.ie.
The Commission’s Report is a comprehensive report that takes account of an assessment of various analyses of population, labour force and expenditure projections; an examination of international approaches; and responses to an extensive consultation process. It established that the current State Pension system is not sustainable into the future and that changes are needed. It has set out a wide range of recommendations in this regard - including measures in relation to aligning retirement ages in employment contracts with the State Pension Age, PRSI base broadening measures, and allowing a person to continue paying PRSI contributions past State Pension Age to improve their social insurance record for State Pension (Contributory) purposes.
Successive Governments have committed to supporting older peoples’ continued engagement in economic and social life, including in the National Positive Ageing Strategy (2013), the Report of the Interdepartmental Working Group on Fuller Working Lives (2016) and the Roadmap for Pensions Reform 2018 – 2023 (2018). Building on the work of these previous groups, the Pensions Commission supported measures to facilitate and encourage fuller working lives. The Commission also fully supported Government commitments to facilitate employees remaining at work past the prevalent contractual retirement age of 65 if they wish to.
The Government agreed in October 2021 that the Commission’s report and recommendations would be referred to the Joint Oireachtas Committee on Social Protection and also to the Commission on Taxation and Welfare for its views. That Joint Oireachtas Committee published its views on the 2nd February 2022. The Commission on Taxation and Welfare has also submitted its views on the Pensions Commission’s PRSI related recommendations earlier this week. These comments, along with the views of the Joint Committee will be considered as part of our deliberations over the coming weeks.
In the interests both of older people and of future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically. My officials are currently examining each of the recommendations and in this regard are consulting across Government through the Cabinet Committee system. I think it is really important that we complete that work and get those views before reaching conclusions on any one recommendation such as the recommendation to align retirement ages in employment contracts with the State Pension age. My intention is to bring a recommended response and implementation plan to Government by the end of March this year.
The State Pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
I hope this clarifies the matter for the Deputy.
