Written answers

Tuesday, 29 January 2013

Department of Social Protection

Pension Provisions

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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To ask the Minister for Social Protection if she has considered the implications of the removal of the transitory pension in 2014; and if she will make a statement on the matter. [4083/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Social structures in Ireland are changing rapidly and the structures of our social support 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 at 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. State pension (transition) requires the person to retire from the workforce. Standardising State pension at age 66 means that people can choose to work longer if they wish to increase their income in retirement.

This pension 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 age. Overtime, the age for State pension contributory was reduced to 66 years. In 2012, 22,430 claims were received for State Pension Transition with 12,559 SPT claims awarded in 2012. In 2012 a total of 2,485 customers transferred from illness benefit to State pension transition, 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. As these numbers indicate, a significant number of customers are already on another social welfare payment before State pension transition with numbers showing that around 12% are transferring directly from work.

I consider it important that those who need to or wish to continue in employment after State pension age should, as far as is possible, be facilitated and supported. Longer working can play an important role in ensuring that our pensions system is sustainable in the future and it can also be beneficial to the individual. Recognising that State pensions are very valuable benefits, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over a working life thereby ensuring equity in the social welfare system. Claimants with an income need may qualify, depending on their means, for another social welfare payment.

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