Derek Nolan (Galway West, Labour)
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489. To ask the Minister for Social Protection her plans to extend the State pension transition which is currently payable to claimants aged 65 beyond the proposed cut-off date of 1 January 2014; and if she will make a statement on the matter. [34227/13]

Joan Burton (Dublin West, Labour)
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Increasing State pension age and the abolition of the State pension (transition) are steps that have been taken to ensure the sustainability of pensions into the future. The decision to reform State pension was taken in the context of changing demographics and the fact that people are living longer and healthier lives.

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.

It should be noted that until the 1970s, the standard age for receipt of State pension was 70 years of age. State pension transition 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 terms of social welfare supports available to those at age 65 who are unable to remain in the workforce, the main social welfare payment available to those who leave employment before pension age is jobseeker’s benefit. Persons who qualify for a jobseeker’s benefit 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).

Consideration is underway on reviewing the needs of older workers who wish to work longer and in terms of the supports available within the social welfare system.

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.