John Paul Phelan (Fine Gael)

I welcome the Minister of State. This matter relates to last week's announcement by the Government of the pensions framework for the future. Everybody acknowledges that the State faces a significant liability in pension provision. However, I was contacted by a constituent who represented a number of others in a similar position. He highlighted that his pension agreement provided for a reduction in his occupational pension from his private sector employer when he turned 65 years because he would then be eligible for the traditional State contributory pension. As a result of the Government's announcement that pension age will increase to 68 years, for these individuals it will mean that between the ages of 65 and 66 years they will experience a significant shortfall in their pensions, as they will only be entitled to €107 per week. Has the Government examined this potential anomaly if pension age is to be increased to between 66 and 68 years? The means test will also affect many people like my constituent. This man's wife is employed part time. Therefore, if a supplementary payment is made during the 12 months he is without a full pension and it is means-tested, that will have a serious knock-on effect for him.

I will reserve a number of questions until the Minister of State has replied. Perhaps there is a straightforward answer and the Government has foreseen his loophole. If not, I will have further questions.