Olivia Mitchell (Dublin South, Fine Gael)
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Question 291: To ask the Minister for Social and Family Affairs his plans to increase the permitted part-time earnings ceiling of €38 a week for a person to quality for a State transition pension; and if he will make a statement on the matter. [16078/08]

Martin Cullen (Waterford, Fianna Fail)
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The state pension (transition) was introduced in 1970 when it was known as the retirement pension. It was designed to bridge the gap between the standard social welfare pension age, which at that time was 70 years of age, and retirement at age 65. The social welfare pension age was reduced over a period of years until it reached 66 years of age. A key qualifying condition for the scheme is that a person has to be retired in order to qualify for a payment. Retirement was de fined as not engaging in insurable employment, which today means earning less than €38 per week. 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.

The retirement condition associated with the state pension (transition) is only one aspect of a much broader agenda which will need to be addressed if we are to create the conditions where people can continue in employment past what we now regard as normal retirement age.

As you are aware, I published the Green Paper on Pensions on 17 th October and this includes an examination of all the issues surrounding retirement age, the barriers faced by older workers who wish to remain in employment and the incentives in this regard which can be considered. A consultation process on the Green Paper is now underway and will remain open until 31 May 2008. Once the consultation process is completed, work on developing the framework for future policy will commence, and proposals submitted to Government for consideration by the end of 2008.