Tom Hayes (Tipperary South, Fine Gael)

I thank the Ceann Comhairle for allowing me to raise this important matter. As the Minister of State is aware, the qualifying age for both the contributory and non-contributory State pension currently stands at 66 years. However, the qualifying age is due to rise to 67 years in 2021 and 68 years by the year 2028. These increases are not unexpected nor are they all that surprising, given the longer life expectancy. In addition, there is expected to be an increase in the number of retired citizens compared with numbers in the workforce over the coming years. Therefore, it is important that the State has substantial financial policies in place in advance of this shift.

The Minister of State will also be aware that under the Social Welfare and Pensions Act 2011, the State transition pension will no longer be paid after 1 January 2014. The purpose of the State transition pension is to help those people who are being forced into retirement at the age of 65 years, too early to receive the State pension which is available to them at 66 years. I ask the Minister of State what assistance will be available to those who continue to be forced into retirement at the age of 65 years, particularly as the qualifying age for the State pension begins to rise. Is consideration being given to outlaw the practice of mandatory retirement?

The decades-old practice of forcing workers to retire at the age of 65 years needs to come to an end and this is what will happen. Government social welfare policy mirrors that belief but I am concerned we have fallen short in legislating for this change in other areas. Countless employees in this country are currently operating under contracts that permit their employers to force them into retirement once they hit the age of 65. The outlawing of this practice would ease the concerns of the people facing this situation and it would reduce the overall financial burden on the State by increasing the tax intake resulting from extended working lives. I am sure the Minister of State will agree that if a 65 year-old man or woman were to lose his or her job through forced retirement, it would prove very difficult for them to find further employment. These people are entitled to apply for social welfare payments such as jobseeker's allowance but this is not a realistic solution.

We are not the first country to face this problem as the UK announced last year that the default retirement age of 65 years was to be phased out. This change means that employers will no longer be allowed to dismiss staff on reaching the age of 65 years. I understand that exceptions may need to be made for certain occupations, particularly those involving a great deal of physical effort. I look forward to hearing the Minister of State's views.

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