Written answers

Tuesday, 9 July 2013

Department of Social Protection

Pension Provisions

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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326. To ask the Minister for Social Protection if she will outline the entitlements available to a person who will be 66 years of age in January 2015 and who would normally qualify for an old age pension; if she will state what payment system will now be implemented to fill this gap year arising from the new system of pension payments; and if she will make a statement on the matter. [33397/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Social Welfare and Pensions Act, 2011 provides that State pension age will be increased gradually to 68 years. This will begin in 2014 with the abolition of the State pension (transition) thereby standardising State pension age for all at 66 years. The State pension age will be further increased to 67 years in 2021 and to 68 years in 2028. These changes apply to all fully insured employees. For anyone who is age 66 in January 2015 and provided they meet the qualifying conditions for State pension, the State pension will be available to them.

There will be no gap year, as described by the Deputy, for anyone who is aged 66 in 2015 provided they meet the qualifying criteria for the State pension. Social welfare payments are made up to the age of 66. The main social welfare payment available to those who leave employment before pension age is jobseekers benefit. Persons who qualify for a job seekers payment who are aged between 65 and 66 years are generally entitled to receive payment up to the date on which they reach pensionable age (66 years).

Raising State pension age and the abolition of the State pension (transition) is a necessary step in ensuring the sustainability of pensions into the future. The recently published OECD report on the Review of the Irish Pension System confirms that reforms are necessary if we are to continue to put pension provision on a sustainable footing given the changes in demographics, the deficit in the Social Insurance Fund, and the difficult fiscal situation.

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