Billy Kelleher (Cork North Central, Fianna Fail)
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275. To ask the Minister for Social Protection the payments public sector workers are entitled to once they are retired by the State at 65 years of age where their pension will not commence until 67 years of age; and if she will make a statement on the matter. [44523/13]

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 standardising of State pension age for all at 66 years and the cessation of State pension transition. The State pension age will then increase 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. This applied at a time when longevity was much lower and working patterns were more likely to be physically demanding. State pension (transition) was introduced in 1970 when it was known as the retirement pension and 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. Over time, the age for State pension contributory was reduced to 66 years.

Public sector workers who are obliged to retire at age 65 will be able to draw their occupational public sector pension at age 65. The changes regarding State pension will have no impact on such public sector workers who are on modified social insurance. However, for those public sector workers who are fully insured and in defined benefit pension schemes, their occupational public sector pensions (and contributions) are, like many occupational pension schemes, integrated (or co-ordinated) with social welfare benefits. This means the occupational pension paid is based on the assumption that the pensioner also receives the State pension.

Where this does not happen, a discretionary supplementary pension may be payable under the relevant public sector pension scheme to bridge the gap. In such cases, a supplementary pension is only payable where the individual, through no fault of their own, does not qualify for social welfare benefit or qualifies at less than the maximum personal rate. It is therefore necessary to claim any available social welfare benefits in order to receive a supplementary pension. This situation is not new and already applies to public sector workers who have a retirement age below 65.

For other workers, the main social welfare payments available to those who leave employment before pension age are jobseekers benefit and job seekers allowance. 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.