Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I will speak a little about pensions in general, as Senators have referred to the issue, and then refer to the Bill. Senators of course know that there are many different types of pensions and issues relating to them. The State contributory pension is not means tested and is funded from PRSI. There is a State non-contributory pension which is means tested and is tax funded. There are public sector pensions, defined benefit private trust pensions, defined contribution private trust pensions and all sorts of different personal arrangements ranging from RACs to PRSAs. The issues facing all of those different types of pensions are distinct and different, and there are challenges relating to their affordability and sustainability in all cases, which require different solutions.

A significant number of reforms have been undertaken, in fairness to the previous Government of which I was a member. Provision was made, on foot of the Waterford Crystal situation, for what would be done in the case of a double insolvency - Senator Humphreys will be very familiar with that work. Provision was also made for the distribution of assets more fairly where a pension scheme is wound up. That is part of what happened with the Aer Lingus and ISS pensions. I appreciate that some people do not believe it was fair, but a law had to be passed on how the money in the pot, which was not enough, would be distributed among potential beneficiaries.

Moves were made to do things, for example, to make pensions more affordable and sustainable in the future by increasing the retirement age, which was a necessary reform. Sinn Féin tried to reverse that necessary reform last week in the Dáil. The risk when changes are made to pension rules is that one might make a bad situation worse.

In the 1970s the retirement age was 70 years of age, and people used to live to the age of 72, 73 or 74.