Written answers

Tuesday, 24 April 2007

Department of Social and Family Affairs

Pension Provisions

11:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 618: To ask the Minister for Social and Family Affairs if he will raise the rate of contributory old age pension to the level of the minimum wage; and if he will make a statement on the matter. [14314/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Since taking office this Government has made the needs of older people a priority with the inclusion of several commitments in the Programme for Government aimed specifically at this group. I am very pleased to say that we have delivered on the most recent of these commitments which was to increase the state pension (non-contributory) to €200 per week by 2007. The State pension (contributory) has passed this mark and now stands at €209.30 per week. Pension increases have been well ahead of inflation thus ensuring that pensions are significantly improved in real terms. Since 1996, and including the Budget increases, pensions have increased by almost 119% or about 57% in real terms.

The estimated cost of increasing all weekly contributory payments to pensioners to the level of the minimum wage of €8.30 per hour is €2,103 million in a full year. This includes the cost of increasing payments to qualified adults to maintain their current proportionate relationship to the personal weekly rates of payment. I am determined that we will build on the success achieved in this area and, as part of the social partnership agreement Towards 2016, the Government have agreed to work with the social partners over a ten-year period to enhance pension provision and income supports generally. This will include further enhancements of social welfare pensions over the period and a commitment to build on the now achieved 2007 target of €200 per week.

The forthcoming Green Paper on pensions will include a discussion of all aspects of our pension system including the contribution of social welfare pensions to ensure an adequate income for older people in retirement, which is at the same time sustainable in the long-term. Following the publication of the Green Paper, a consultation process will then take place and the Government will respond to this by publishing a framework for future pensions policy.

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