Written answers

Tuesday, 22 January 2013

Department of Social Protection

Social Welfare Code

Photo of Joanna TuffyJoanna Tuffy (Dublin Mid West, Labour)
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389. To ask the Minister for Social Protection if she will provide details of the number of persons currently in employment who will be affected by the proposed abolition of the State pension transition from 1 January 2014, by virtue of reaching qualifying age in 2014, 2015, 2016, 2017, 2018 and 2019 respectively; and if she will make a statement on the matter. [2987/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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It is not possible to answer the Deputy’s question in the time available. I will arrange for the answer to be supplied to her as soon as possible.

Photo of Joanna TuffyJoanna Tuffy (Dublin Mid West, Labour)
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390. To ask the Minister for Social Protection the number of persons in the population on social welfare payments who would have qualified to receive the State pension transition in 2014, 2015, 2016, 2017, 2018 and 2019 respectively and who will no longer do so as a result of its abolition from 1 January 2014; if she will provide a breakdown of the groups involved that is people with disabilities, widows/widowers and so on; and if she will make a statement on the matter. [2988/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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State pension transition is paid to those who retire from work at age 65 and who meet the qualifying conditions for the scheme, until they reach 66 years and transfer to State pension contributory. In 2012, 22,430 claims were received for State pension transition with 12,559 claims awarded . It is not possible to predict with accuracy the number of persons in the population on social welfare payments who would have qualified to receive the State pension transition in 2014, 2015, 2016, 2017, 2018 and 2019 respectively.

In relation to previous years, in 2011, 2,384 transferred to State pension transition from illness benefit, 829 transferred from job seekers benefit, 827 from job seekers allowance, 405 from widows/widowers/surviving civil partners scheme, 88 customers from invalidity pension and 176 from disability allowance.

In 2012 the equivalent was 2,485 from illness benefit, 1,044 from job seekers benefit, 922 from jobseekers allowance, 439 from widows/widowers/surviving civil partners scheme, 200 from disability allowance and105 from invalidity pension

State pension age will be standardised at age 66 in 2014 when State pension transition is abolished. Reforms to pension provision such as this are necessary if we are to continue to put pension provision on a sustainable footing given the changes in demographics and the need to sustain pension provision in Ireland.

Photo of Joanna TuffyJoanna Tuffy (Dublin Mid West, Labour)
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391. To ask the Minister for Social Protection if she will provide details of the estimated savings to the Exchequer in each year from 2014 to 2019 arising from the proposed abolition of the State pension transition from 1 January 2014, including a breakdown of the offsetting cost arising from affected claimants who would instead be able to claim jobseeker's benefit/allowance; and if she will make a statement on the matter. [2989/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Social structures in Ireland are changing rapidly and social supports need to change to accommodate this. The decision to increase State pension age was taken in the context of changing demographics and the fact that people are living longer and healthier lives.

The standardisation of State pension age to age 66 is one of the measures planned which aims to improve the sustainability of the Irish pension system. As provided for in legislation, State pension age will further increase to age 67 in 2021 and to 68 in 2028.

These changes were provided for in the Social Welfare and Pensions Act, 2011. Estimates at that time indicated that the gross estimated savings in 2014 were expected to be in the region of €33 million with a full year savings in 2015 of approximately €65 million. These savings take into account claimants who would instead receive various other social welfare payments, including jobseeker benefits.

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