Seanad debates
Tuesday, 12 December 2023
Social Welfare (Miscellaneous Provisions) Bill 2023: Committee and Remaining Stages
11:00 am
Paddy Burke (Fine Gael) | Oireachtas source
How will this work on the ground? I will outline a couple of scenarios. The first relates to people who may wish to retire at the age of 66 and draw a pension and maybe work two or three days a week. Will such people pay PRSI on their earnings afterwards? Is there no PRSI on it? Can they opt to pay PRSI on earnings and then get a higher pension when they stop work completely? On the other hand, there is a difference the rates at ages 66, 67 and 68 or whatever. If it is €20 per week, let us say, for each bracket. As time goes on, the gap will get bigger because there will be index-linked pensions in future. Even if a pension is not index-linked, it will be on a pro ratabasis. The difference in the rate for a person of 66 and the rate for another person might go to €22 the following year. Alternatively, will the gap stay the same every year to eternity or until a new pension proposal is brought in? I hope the Minister gets the point I am trying to make. In the context of people who are not drawing the full State pension, the gap is getting wider every year.The gap between pensioners entitled to the full State pension of €267 or whatever it is per week and those who are on maybe 90% and are drawing maybe €230 per week is widening every year. How will this new pension proposal work on the ground in the context of those two issues?
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