Oireachtas Joint and Select Committees

Thursday, 14 June 2018

Joint Oireachtas Committee on Social Protection

State Pension Reform: Discussion

10:30 am

Photo of John BradyJohn Brady (Wicklow, Sinn Fein) | Oireachtas source

I have a few questions. Deputy O'Dea referred to the changes to home caring and so forth. Specifically on the T12, I acknowledge the Department will write in the fourth quarter to the 51,000 individuals it has identified, but there will be others outside that who clearly would like to have their cases reviewed. What process is in place for that? Will there be a way for them to contact the Department and ask for their cases to be reviewed? In terms of the evidence that people will have to provide, I am interested in getting clarity on that for the many women who took time out of their working lives to look after their families. I understand the Minister corresponded with Age Action Ireland. Could we get some specifics on what type of approach will be taken if people cannot provide evidence? What evidence will be sought?

With regard to the overall total contributions approach, Mr. Duggan said no figure has been put on it. However, it has been widely circulated that it will be up to 40 years. It would be alarming if that was to the case but we have to hear officially what it is. It is thought that it will be between 30 and 40 years. The self-employed have been identified as a cause of concern and returning emigrants will be another concern. Many people have been forced to leave these shores against their will to find employment elsewhere. What provision will be made for them?

The pension age will increase to 67 years in 2021 and it will go up again in 2028. There is a serious anomaly currently where people are forced to resign at 65 years due to the nature of their contracts and then must sign on for jobseeker's payment for a year until they get the State pension at 66 years old. What thought has been given to this by the Department? Is it expected that people will be forced to sign on for jobseeker's payment for two years when the pension age increases to 67 years? The Department will be aware that I have introduced legislation on this but, like many other legislative measures tabled by the Opposition, it is caught in the red tape the Government has brought forward and is waiting on a money message. As Age Action Ireland has said on numerous occasions, many people would like to remain in the workforce for a multitude of reasons. That should be progressed. Again, I call on the Government to issue the money message and allow that critical legislation move to Committee Stage and, if amendments are required, to allow that to happen.

The other concern is that the pension age will then go up to 68 years in 2028. Contrary to what Mr. Duggan said with regard to other OECD countries, Ireland far exceeds any of its European counterparts in terms of how fast we are moving to increase the pension age and the timeframe for progressing it. The UK, for example, is only increasing its pension age to 67 years in 2028. At the same time, we will increase our pension age to 68 years.

Germany will not increase the pension age to 67 until 2031. It is also frightening that, in 2035, we will review this again with the possibility of increasing it further. I have serious concerns about this. This was part of a deal struck with the troika with no consultation and it far exceeds the rate of change in any of our European counterparts.

I have a few questions for Age Action. Is the organisation satisfied with the total contribution approach being put forward by Government and the continued reliance on contributions? What pension system would Age Action like to be introduced? Should it be a basic or a universal pension? What are its views on auto-enrolment? Is the increase of €5 the main issue for the people it represents?

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