Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Question 135: To ask the Minister for Social and Family Affairs if he has examined the possibility of making alterations to the social insurance system to allow a more flexible approach to retirement; and if he will make a statement on the matter. [37633/06]

John Perry (Sligo-Leitrim, Fine Gael)
Link to this: Individually | In context

Question 138: To ask the Minister for Social and Family Affairs his views on providing incentives to employers to promote the employment of people of pension age; the implications of same; and if he will make a statement on the matter. [37631/06]

John Perry (Sligo-Leitrim, Fine Gael)
Link to this: Individually | In context

Question 142: To ask the Minister for Social and Family Affairs the efforts his Department is making to promote social inclusion of over 65s in particular in relation to access to services and employment; and if he will make a statement on the matter. [37632/06]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 135, 138 and 142 together.

The National Action Plan for Inclusion is currently being prepared by the Office for Social Inclusion in my Department. This plan will encompass a lifecycle approach within which the key social challenges will be addressed, by assessing the risks which individuals face and the supports available to them at each stage in the life cycle, of which older people are one of the key areas for attention.

This strategic framework will help to create more coherent and integrated structures and facilitate better and more effective reporting and monitoring across the spectrum of Government activity in the area of social inclusion. It is being designed to systematically overcome difficulties in implementation arising from insufficient coordination and integration.

The current NAP/inclusion already recognises that access to adequate resources is an important requirement for the participation of older people. In this regard, the needs of older people have been, and will remain, a priority for this Government. The Government's strategy in this area is to provide the resources for older people to enable them to play a full role in society through a number of measures like significant increases in pension rates and supports for carers, and by making schemes such as the household benefits package and medical cards available on a much wider basis. For instance, over the last 10 years the rate at which contributory pensions are paid has increased by some 103%, or a real increase of nearly 50%, while household benefits and medical cards are now available on a universal basis for those who are 70 years of age and over.

The Government is committed to reaching a target rate of at least €200 per week for the basic state pension and I expect to progress this commitment in the forthcoming Budget. I will continue to look for opportunities to improve the supports we provide for our older people.

With regard to access to employment, I consider it important that those who wish to continue in employment after normal retirement age should, as far as is possible, be facilitated and supported. Longer working can play an important role in ensuring that our pensions system is sustainable in the future and it can also be beneficial to the individual.

The National Pensions Review, published in January, includes recommendations from the Pensions Board designed to encourage people to continue working after normal retirement age. The measures suggested involve allowing people to defer receiving their social welfare pension and to grant them an actuarially enhanced payment when they do claim. The Pensions Board also considered that if this was combined with allowing those with less than full entitlements to count contributions made after age 65 or 66 in order to improve their contributions record, this would complete the incentives for longer working within the social welfare pensions system. I am in broad agreement with the suggestions and will be seeking to have them introduced as soon as is practical.

However, issues surrounding social welfare payments represent only one aspect of the problem. As I have said before, we require a change in attitudes in relation to longer working from both employers and employees. Employers must seek to retain older employees and create the conditions which will make longer working both attractive and feasible for older workers.

As the House is aware, the Government is committed to publishing a Green Paper on pensions as part of the social partnership agreement Towards 2016.

This will include an examination of the issues surrounding retirement age and the barriers faced by older workers who wish to remain in employment. The Green Paper will be published by the end of March next year and, following a consultation process, the Government will respond later in the year by publishing a framework to address the long-term policy on pensions and related issues.