Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The Deputy will be aware that last week the Government decided to increase the compulsory retirement age from 65 to 70 for public servants recruited prior to 1 April 2004. I announced this on Wednesday last with the Ministers of State, Deputies O'Donovan and Moran. The decision to remain at work beyond the age of 65 will be completely voluntary on the part of the employee.

There will be no change to the minimum pension age, that is, the age at which a public servant can retire and receive his or her pension. Once the necessary legislation is commenced, public servants, when they reach the minimum pension age, will be free to retire and receive their pensions at the time of their choosing but will also be free to continue in work up to the age of 70. This will enhance the options available to employees as they approach retirement.

The gap between the current compulsory retirement age of 65 for the pre-2004 cohort and the age of eligibility for the contributory State pension, which is 66, is one of the key policy considerations which gave rise to the changes I announced last week. The pensions of post-1995 public servants are integrated with the contributory State pension. This results in a situation where the pensioner generally applies to the Department of Employment Affairs and Social Protection for social welfare benefit, which is usually jobseeker's benefit, for the intervening year. Many pensioners are not comfortable with that arrangement because they are required to register for social welfare benefits despite the fact that they have retired. Pensioners feel that they have earned their pensions and should not have to sign on as jobseekers for that period. Many would prefer to continue to work until normal State pension age rather than engage in such a process. This process is likely to become more protracted as the age of eligibility for the State pension increases in 2021 and 2028.

Many public servants want to continue to work beyond the age of 65 because they are fit and healthy and have the ability to contribute further. Others might not feel the same. This decision recognises the rights and interests of both groups.

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