Joan Burton (Dublin West, Labour) | Oireachtas source

Deputy O'Dea may recall that his own Government produced key documents in 2007 and 2010. In the context of changing population age structures in Ireland, the recommendation of those documents and the framework relating to pensions was that the population age be raised to 66. The Government at the time agreed to that and it became policy. It also set out the trajectory of the subsequent increases to the higher ages in 2021 and 2028. That was agreed by that Government. I think Deputy O'Dea was still a member of that Government so I am sure he will remember it. This was the context. When the troika came to Ireland, that was understandably given to it as part of the Fianna Fáil plan and accepted. The changes in the pension age in Ireland are based on the population age changes and people living longer and having a sustainable contributory retirement pension. The reforms have improved Ireland's credit rating significantly. To be clear, what we are talking about is ensuring that trustees can properly administer their schemes.

Being a trustee is a complex and onerous job. This is a technical amendment designed to address a particular situation where scheme rules state a specific age of 65 years rather the normal pensionable age, which will be 66 years from 1 January 2014. One can argue that it was always that age under the State pension transition but, following those recommendations, we moved to that policy. These provisions do not affect the rate of occupational pension promised, which was Deputy Ó Snodaigh's concern. Previously schemes operated off the State pension being payable from the age of 65 years. The amendment is simply intended to ensure this continues to be the case and that members continue to receive the benefits they have been promised. It ensures that the scheme continues to operate in the manner intended and as understood by and communicated to scheme members. Both provisions relate to the date of cessation of the bridging pension where the reference to a specific age would provide a bridging pension from ceasing. In the case of an integrated pension, it will ensure that occupational pensions can continue to reference the State pension in their calculations.

Pension scheme trustees have a fiduciary responsibility under the Pension Act 1990 to administer these schemes properly. That is a big issue for many trustees. In the past, trustees tended to be lay volunteers who built up expertise in pensions because they undertook to take on their role on behalf of their co-workers. Section 59 of the 1990 Act is an overarching provision that sets out the broad duties of trustees and it cannot impede the rules of the scheme from being correctly administered. The provisions are discretionary and they state clearly that trustees can amend their schemes' rules as appropriate, provided they do so in accordance with the law. Many schemes set out differing retirement ages, as is their entitlement. Prior to the crash, a number of banks offered early retirement ages through their schemes. In the context of an examination of the population numbers and ages in Ireland, the Government of which Deputy O'Dea was a member moved decisively to adjust the State retirement age to 66 years in 2014, 67 years in 2021 and 68 years in 2028. This change reflects the potential implications for certain trustees. Rather than stating the State retirement age, they may indicate the age of 65. The trustees have to be assured they are properly administering their duties on behalf of pensioners.

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