James Reilly (Dublin North, Fine Gael)

The underlying and fundamental issue is demographic. The OECD put this conundrum well when it stated, "Policy makers are facing the challenge of providing a short-term response to the crisis without losing sight of the longer-term structural reforms needed to put pension on a solid footing in light of population ageing." Addressing this demographic problem is what lies behind the changes to the age at which people qualify for the state pension. It is also why the Government has asked the OECD to examine current pension policy in light of the economic downturn and to ensure it meets the needs of future generations. The central objective is to reform the system of social protection in order that it is viable into the future.

The pension reform measures under way, including the raising of State pension age which has been already provided for in primary legislation, address some of these issues. While the current State pension age of 66 remains, the State pension which applies for one year for persons aged 65 will cease from 2014. Thereafter, State pension age will increase to 67 in 2021 and 68 in 2028. There is considerably more in the reply, which I will pass on to the Deputy.

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