Seanad debates

Wednesday, 6 November 2013

Social Welfare and Pensions Bill 2013: Committee Stage

 

7:40 pm

Photo of David CullinaneDavid Cullinane (Sinn Fein) | Oireachtas source

The Minister has not tabled any amendments to this section but we wanted to bring to her attention a number of concerns that she might be able to address either in this Bill or subsequently. Under section 59B(2)(a) of the Pensions Act 1990, where the rules of the scheme permit, trustees can reduce the benefit paid to a pensioner once another pension becomes payable and when they become entitled to a full rate of State pension in circumstances where they are entitled to less than a full rate beforehand. Section 18 gives pension scheme trustees a discretionary power to change the rules of a scheme to allow for the reduction of benefits paid to people from the age of 65 as if the State pension were payable to them even when it is not. In essence, while scheme trustees can, at their discretion, fund additionality, having an occupational pension from 65 years will not guarantee protection from the impact of the Government's previous decision to raise the State pension age to 66 in 2014, 67 in 2021 and 68 in 2028. We see that first as part of a series of erosion of retirement income safeguards for older people. We are talking about integrated pensions and I want to ask the Minister a question by outlining a hypothetical situation, which is the best way I can explain my concern.

Would I be correct in saying that there could be people who would have expected to receive an income from the age of 65 of, say, €400, €230 of which is made up from their State pension and €170 from a scheme? Would I be correct in saying that following the enactment of this Bill, that person will not receive the State pension but only the €170 from their scheme? There might be an expectancy on their part that they will receive €400 once they reach the age of 65 but because the pension is increased to 66, they will not get that.

For one year they will get €170 under the scheme. The Minister will say they can potentially apply for jobseeker's benefit but the problem is that only lasts nine months.

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