Seanad debates

Wednesday, 6 November 2013

Social Welfare and Pensions Bill 2013: Committee Stage

 

7:50 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour) | Oireachtas source

I refer first to the important issue raised by Senator Cullinane. The State pension transition facility was abolished and changes were made to jobseeker's benefit. I would like to clarify that somebody who seeks this benefit at the age of 65 or later will be paid until his or her 66th birthday when he or she qualifies for the State pension. In 2021 and 2028, further proposed changes to the State pension age will presumably be addressed then.

As Senator Moloney pointed out, I changed by way of circular prior to the debate on the Bill in the Dáil the arrangements relating to people who are 62 or older and who may be in receipt of jobseeker's allowance such that they will simply be required to register with the Department once a year in respect of the allowance or jobseeker's benefit. That will be a significant assistance to people. There will be no penalties relating to activation but, on the other hand, if they wish to take part in activation measures that are available, for example, CE or Tús schemes and so on, it will be open to them. If somebody of that age has been doing outdoor work and is unlikely to find similar work or does not want to find it and is in effect retiring via the jobseeker's payments at a slightly earlier age, he or she will only be required to register once a year. That will give a much better option to such older people but given many of them want to continue working, in some cases into their 70s, the option to engage in activation measures will be available to them. There will not be a break in the payment of jobseeker's benefit between an individual's 65th and 66th birthday when he or she qualifies for the State pension.

This is a technical amendment designed to address a scenario where scheme rules state a specific age of 65 rather than normal pensionable age. These provisions do not affect the rate of occupational pension promised. Before schemes operated off the State pension being payable from age 65. This amendment is simply intended to ensure this continues to be the case and members continue to receive the benefits they have been promised. Organisations such as the ISCP are concerned about defined benefit pensions schemes. The difficulties with these schemes, unfortunately, largely relate to investments in banks and so on and to the turmoil on the international financial markets rather than to regulation of pensions by the previous or current Government. The trustees should organise the pension fund in the way that is most provident in terms of the members but also in terms of the promise the fund has made to the employees and whether in practice that is realisable. We are addressing many of those issues currently through the reinstatement of the funding standard and the regulator is working with many schemes to ensure the viability of the maximum number of schemes.

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