Written answers

Tuesday, 1 June 2010

Department of Social and Family Affairs

Pension Provisions

10:00 am

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 361: To ask the Minister for Social Protection the current status and details of his plans to extend the age of qualification for the State old age pension, both contributory and non-contributory; the intended impact on those who have, for whatever reason, already retired but who will not reach the current age of qualification until after the proposed commencement date of the planned change; and if he will make a statement on the matter. [23258/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The National Pensions Framework was published on 3 March 2010. It encompasses all aspects of pensions, from social welfare to private occupational pensions and public sector pension reform. The aim of the framework is to deliver security, equity, choice and clarity for the individual, the employer and the State. It also aims to increase pension coverage, particularly among low to middle income groups and to ensure that State support for pensions is equitable and sustainable.

A technical implementation group has been established to develop the legislative, regulatory and administrative infrastructure required to put the reforms into operation. The group which is chaired by my Department held its first meeting in May 2010.

Recognising that people are living longer and healthier lives, the Government has decided to amend State pension age in three separate stages:

· In 2014, the State pension (transition) will be abolished. The effect of this will be to standardise State pension age at 66;

· In 2021, the State pension age will be set at 67; and

· Finally, in 2028, State pension age will be set at 68.

For those people who wish to postpone drawing down their State pension, arrangements will be put in place to enable them to receive an actuarially increased benefit when they decide to retire. In addition, for those with contribution shortfalls at pension age, arrangements will be put in place to allow them to receive additional benefit at a later date if they continue to make paid contributions for pension purposes while remaining in work or self-employment.

Currently, State pension (transition) is paid at age 65 with State pension (contributory) being paid at age 66. While the standard age at which people retire is currently 65, for those who have had to retire earlier due to illness they may be entitled to illness payments. Others who are unemployed may be entitled to unemployment payments.

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