Simon Harris (Wicklow, Fine Gael)
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To ask the Minister for Social Protection if she will confirm that the State pension transition at age 65 years is being abolished with effect from 1 January 2014; if she will outline her plans to provide for persons facing compulsory retirement at age 65 years after that date, in view of the fact that the State pension will not be paid until persons reach the age of 66 years; the criteria for her plans; and if she will make a statement on the matter. [7682/13]

Joan Burton (Dublin West, Labour)
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The State pension (transition) (SPT) 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.

The Social Welfare and Pensions Act 2011 provides for changes to State pension provision. SPT will cease to be paid from 2014 which will standardise the payment of pension at age 66. In addition, the age at which State pension (contributory) (SPC) will be payable will increase to 67 years from 2012 and to 68 years from 2028.

The abolition of SPT removes the retirement condition which acts as an incentive to leave the workforce and has been widely criticised as a barrier to older people remaining in employment. There is no retirement condition attached to the SPC.

In December 2012, there were just under 14,400 SPT recipients and 312,300 recipients of SPC. Only 1,700 people, or 12% in all, were awarded SPT directly from employment while almost half were already in receipt of another social welfare payment.

Currently, a person who retires from work on reaching age 65 and who does not have sufficient PRSI contributions to qualify for SPT may apply for another social welfare payment, depending on their individual circumstances. With regard to employment, arrangements for retirement from work are usually the subject of contractual arrangements between the employer and the employee and, as such, are outside my remit.

The State pension is the bedrock of the Irish pension system. These reforms are essential to ensure its sustainability and to address the challenges of changing demographics such as increasing life expectancy. There are no plans to change the date of implementation.