Joe O'Brien (Dublin Fingal, Green Party) | Oireachtas source

I thank the Senator for raising this important matter. It is important to also point out that the pension age has been 66 for a long time and, in accordance with legislation introduced last year, it will not increase this year but remain at that age. The new benefit payment for 65-year-olds was introduced to deliver on a programme for Government commitment to address the position of people who retire at the age of 65. "Retire at 65" is an important phrase. In many cases, it is not because they want to but because that is the retirement age specified in their contract of employment.

As we all know, up until now, people in that position had to claim a jobseeker payment, sign in at the Intreo centre and declare that they were genuinely seeking and available for work.That is no longer the case. With this new benefit payment people who retire at age 65 do not have to sign on or attend an Intreo centre. However, if they wish they can still receive assistance in finding a job, including through participation in a course of education, while retaining their full payment entitlement.

This new benefit provides for a standard rate of payment payable at €203 per week with an increase for dependants, as appropriate. The social insurance contribution requirements are not as high as those for receipt of the State pension and people retiring at age 65 should, in most cases, easily meet the required PRSI conditionality. Although only recently introduced, more than 2,330 people aged 65 currently are availing of the new benefit.

New applicants for the scheme must satisfy all of the qualifying conditions of the scheme which include having the required contributions in the governing contribution year, GCY, which is the second last complete tax year. For example, in this situation where the person will be making a claim for the new benefit in 2022, the second last complete tax year is 2020.

To qualify for the payment a person must have paid 104 PRSI insurable employment contributions at class A, H or P or paid 156 class S contributions if they are self-employed. They also require 36 contributions paid from employment in the GCY. At least 13 of those contributions must be paid from any combination of employment in the GCY, the two years before this, the last year or the current tax year. Alternatively, they could qualify if they have 26 PRSI contributions paid in the GCY and 26 paid in the year immediately before that. The requirement to have paid contributions during this period is to demonstrate their attachment to the workforce.

These are complex criteria but each case is determined on an individual basis taking into account the contributions paid on the date at which the person retired from employment. The best way to check entitlement in the case of an individual is to make an application for the benefit.

With regard to the specific example referred to by the Senator in his question, a person aged 63 years and retiring in 2020 with an entitlement to jobseeker's benefit would be entitled to social insurance credits and would qualify for the new benefit at age 65. I want to underline the point that it is very important in these circumstances that the person would claim their credits.

I will address the Senator's query regarding the attribution of contributions. The Social Welfare (Covid-19) (Amendment) Act 2020 provides, among other measures, for the attribution of social insurance contributions to insured persons who were beneficiaries of certain Covid-19 income support payments, including the pandemic unemployment payment, PUP.

The attribution of contributions will ensure that recipients of the PUP will have social insurance contributions attributed to them at the same value as they were paying while employed immediately before going on the payment. The measure means that people who lost their jobs arising from the pandemic will not be disadvantaged in accessing social insurance benefits such as the new benefit payment for those aged 65 years.