Róisín Shortall (Dublin North West, Labour)
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Question 309: To ask the Minister for Social Protection his proposals to amend current rules in relation to working while receiving a State pension; and if proposals are envisaged in conjunction with the proposals to raise the State pension age. [18038/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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There are three types of State pension, State pension (contributory), State pension (non-contributory) and State pension (transition). The State pension (transition) is paid to people at age 65 for one year provided they cease working. This is defined as not earning less than €38 per week. The State pension (contributory) is paid to people who are 66 years or over who meet the qualifying contributions for the pension. There is no restriction on them working while receiving this pension. The State pension (non-contributory) is a means based pension payable to those over 66 years. It features an employment earnings disregard incentive of €200 per week for those who wish to earn extra income.

In the context of an ageing population, with projections suggesting that there will be less than two people of working age to every person aged 65 or over in the middle of century (compared to almost six people of working age today), more emphasis will be placed upon retaining older workers in the labour force. Over the next 10 years, the number of people over the age of 65 is expected to increase by almost 60 per cent, while, by 2050, it is expected to have trebled, from some 450,000 to 1.5 million. Therefore, as announced as part of the National Pensions Framework, the state pension age will be increased gradually to 68 years. This will begin in 2014 with the removal of the State Pension (Transition), thereby standardising State pension age at 66. State pension age will be increased to 67 years in 2021 and to 68 in 2028.

The increase in retirement age will assist in dealing with the future sustainability of the pensions system and also recognises that people are living longer and healthier lives. A technical implementation group chaired by my Department has been established to develop the legislative, regulatory and administrative infrastructure required to put the necessary reforms into operation.