Aengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

This is another retrograde step. I opposed the change to the State transition pension at the time because it was not logical and forced pensioners of 65 years to apply for the jobseeker's allowance and all that entails. While the Minister announced that some of the requirements attaching to the jobseeker's allowance will no longer apply to those aged over 62 years, which is a welcome step, she is also proposing to penalise people on the invalidity pension to the tune of €36.80 per week. Over the year that this supposed anomaly applies, €1,914 will be taken from the pockets of pensioners.

As Deputy Naughten stated, people paid PRSI on the basis that they would receive a return in the event that they became unemployed or ill. The invalidity pension is one of a list of benefits. The State, in changing the invalidity pension and creating a new level of payment, will cut payments to 65 year old disabled pensioners by nearly €2,000 per annum.

Invalidity pension is paid to people with the requisite contribution record who cannot work due to long-term illness. The contribution criteria have also changed in recent years. The current rate of invalidity pension is €193.50 for those aged under 65 years and €230 for those who are 65 years. This is where the difference lies. Those who are now aged 64 years will have calculated that they would receive an invalidity pension of €230 per week on reaching 65 years. The higher rate, which is not, in any case, something to shout about as it will not make anybody rich, is to be discontinued. As a result, people aged 65 years will no longer enjoy a pension of €230 and will be penalised by receiving a reduced payment. This measure will apply next year.

The Government also plans to increase the pension age to 67 years in, I believe, 2021.

At that stage, people will have been in limbo for two years. An anomaly will have been created not only for one year - next year - but in the future the gap will be for two and three years. Why not address the fact people are in contracts which will finish at 60 or 65 years of age or, in the future, at 66 years of age? If they have an entitlement, it should be for the full State pension at that stage.

I have been told my time is running out, which shows how ridiculous this is. We cannot get to grips with the legislation in any detail on Committee Stage because a guillotine is being imposed by the Government, despite its promise only last week not to impose guillotines.

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