James O'Connor (Cork East, Fianna Fail) | Oireachtas source

I wish to use my time to discuss the deferral of the planned increase in the State pension age, which will remain at 66 years pending the report of the commission on pensions. I wholeheartedly welcome this. Fianna Fáil's manifesto during this year's general election promised to establish a commission to examine the State pension age and defer further age increases pending that examination's completion. The increase was controversial and a dominant issue during the general election, and rightly so. It is right that people who have paid for State services throughout their lives enjoy their later years and are not forced to continue working or actively seek social welfare payments.

It was subsequently agreed in the programme for Government with Fine Gael and the Green Party to establish a commission on pensions to examine suitability and eligibility issues with State pensions and the Social Insurance Fund. The commission will outline the options for the Government to address issues such as qualifying age, contribution rates, total contributions and eligibility requirements.

It is critical that there be gender-equal representation and older people on the newly established commission. While the commission's members are eminently qualified across a range of specialties, I welcome the Bill's repeal of the planned increase from 67 years to 68 years that was scheduled to happen on 1 January 2028. This means that the commission can consider matters relating to the State pension age unconstrained by prospective changes. However, we must ensure that a wide range of stakeholders are involved in the consultation process. The failure to acknowledge the role of organisations that advocate for women and older people will skew the conversation and might adversely affect the outcome of the commission's work. I suggest that, as one of our leading females in the Cabinet, this is a matter to which the Minister could give some consideration.

The pandemic has had a major impact on social welfare expenditure in 2020, with €27.3 billion being spent by the end of November. That was almost €8 billion, or 41%, ahead of the 2020 Estimates. Such a large expenditure needs to be accounted for wisely. The deferral of the increase in the State pension age will cost €221 million in 2021. The 2022 full-year extra cost of retaining the State pension age at 66 years is expected to be approximately €453 million. The estimate of the net extra cost takes into consideration PRSI receipts forgone, movements from other social welfare schemes and secondary benefit entitlements, including fuel allowance, household benefit payments and the telephone allowance. Such decisions are not being taken lightly by the Government. From Fianna Fáil's point of view, we want to get this situation resolved and are willing to put the necessary resources in place to do so correctly.

All of this hammers home the message that, as parties in government, we must recognise that this is an important issue for many people across the country who have worked hard their entire lives and want to look forward to happy retirements. We should handle this matter delicately and give it the attention and care it deserves. I am confident that the Minister will do so.

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