Oireachtas Joint and Select Committees
Wednesday, 22 November 2023
Select Committee on Social Protection
Estimates for Public Service 2023
Vote 37 - Social Protection (Supplementary)
Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source
On the PRSI question, obviously the economy is performing extremely well. What we have done is what I said I would do, which is to keep the pension age at 66 and set out gradual PRSI increases over the next five years. The first one is kicking in at 0.1% from 1 October. That will cover the pay-related benefit and keep the pension age at 66. We will do it at small amounts and gradually. Now is the time to do it when everything is in good shape. As the Social Insurance Fund is in good shape at the minute, small amounts are better now than at times when something has to have a fast reaction and needs a big increase. For the average earner it will work out at about 90 cent a week. A person will be able to retire at the age of 66. A pension at 66 is worth about €300,000 in a pot for the average person. Then we are also bringing in the PRB and it is a comfort to know that if one is made redundant one has that bit of help. I actually think it is not bad value at 90 cent per week for the average earner as an increased contribution. This provision will be made in a separate Bill.
My officials will explore the design of a scheme that would modify the current benefit payment for 65-year-olds. The Deputy will be aware that I brought this in a couple years ago whereby a person did not have to be actively seeking work and he or she got the benefit for the 12 months. We we will look at that to see what we can do for people who have a long social insurance history of 40 years or more. I absolutely agree that there are cases where somebody has been doing hard manual work for 40-odd years, their back is broken and it is tough getting up to have to go to work. I accept that and we will look at it but I wanted to move on and get this other piece started and get it implemented first. We will look at that, however, and there is a commitment to do that.
The partial capacity benefit is open to illness benefit recipients over six months as well as invalidity pensions. If the Deputy gives me the specific details of the case I will look at it again. Is that all right? I am not all over the detail to be honest.
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