Robert Dowds (Dublin Mid West, Labour)
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Question 102: To ask the Minister for Social Protection the pension or work situation of persons who retire at 65 years of age and who are not eligible for a pension until they reach 66 years of age, the way this will change with the abolition of the State pension transition in 2014; and if she will make a statement on the matter. [31048/12]

Joan Burton (Dublin West, Labour)
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The Social Welfare and Pensions Act 2011 provides for changes to State pension provision. While the State pension age of 66 remains unchanged, the transition payment, knows as State pension (transition) (SPT) which is in place for persons aged 65 with qualifying conditions, will be abolished from 2014. As provided for in the Act, the State pension (contributory) age will be increased in 2021 to 67 years and to 68 years with effect from 2028.

In terms of work, the arrangement around retirement from work is usually the subject of the contractual arrangement in place between the employer and the employee and is outside my remit.

The State pension (transition) which is a temporary payment, is paid for a maximum of 12 months and is available to people who retire from work on reaching age 65 provided they satisfy the necessary PRSI contributions criteria and that they do not work for that one year between age 65 and 66.

The State pension (contributory) also social insurance based, and the State pension (non-contributory) which is means tested, are available for people on reaching pension age (currently 66 years). There is no barrier to work for those is receipt of State pension. Currently, where a person who retires from work on reaching age 65 and who does not have sufficient PRSI contributions to qualify for the State pension (transition), they may apply for another social welfare payment, depending on their individual circumstances. It is worth noting that in 2011, almost half of those who applied for the transition payment were already in receipt of another social welfare payment.

The State pension is the bedrock of the Irish pension system. At present, there are six people of working age for each pensioner. This is expected to reduce to just over two people of working age for each pensioner by 2060. Reforms are essential to address the challenges of increasing life expectancy and to ensure its sustainability.