Oireachtas Joint and Select Committees

Wednesday, 17 November 2021

Joint Oireachtas Committee on Social Protection

Report of the Commission on Pensions: Discussion (Resumed)

Photo of Claire KerraneClaire Kerrane (Roscommon-Galway, Sinn Fein) | Oireachtas source

I have a question about the table on page 132 of the commission's report. It is fine if its representatives cannot answer it now. Do the Exchequer expenditure projections in that table include the indexation link to 34% of earnings or an increase in the State pension? I want to check that. The witnesses can come back on it, as I appreciate they may not have that information.

I reiterate that I believe we will have an issue with the move to those in manual labour drawing the State pension at 67 years of age. I appreciate what the commission has put forward in asking the Government to look at the option of providing a pension at 65 to those who simply will not be able to work beyond that age. Has the commission put that forward as a recommendation to Government with those workers in manual labour jobs who will find it hard to remain on in work to 67 in mind?

The chairperson asked the question I put to Mr. Duggan earlier regarding those savings. It would be great to get something in writing on what the savings will be if we increase the State pension age and we continue to pay out a jobseeker's rate payment benefit, or whatever it is called. I will again make the point I made to Mr. Duggan regarding the figure of more than €200 million that had to be charged because we did not increase the age to 67. If we looked at removing the ages in contracts that see people forced to retire at 65, and we also allowed those who remained at work to accrue PRSI, I believe that figure would be much lower.

We need to move on getting rid of those ages stipulated in contracts that are below State pension age and allow those who want to, and are willing and able to, work on to accrue PRSI contributions. In some cases, they need to work on because they do not have the PRSI for a full State pension. In other cases, they want to work on for social reasons because, in some cases, they have nothing else. It is not always financial. I would argue that those savings are limited given that we are paying out. Will we continue to pay out when the pension age increases to 67? Will that benefit payment extend to two years once the pension age increases?

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