Written answers

Tuesday, 19 November 2013

Department of Social Protection

State Pension (Contributory) Eligibility

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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359. To ask the Minister for Social Protection if she will reverse her decision to request people at 65 years of age to go on jobseeker's allowance before they are eligible for the State pension; and the arrangements she has in place to ensure that persons of that age who worked all their lives are not put in a difficult position. [49481/13]

Photo of Joan BurtonJoan 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.

These changes are already provided for in legislation. 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.

The Deputy may wish to note that a significant number of people coming on to State pension (transition) in 2012 did not come from work as many were already on other social welfare schemes. In December 2012 there were approximately 14,400 State pension (transition) claims in payment and of those, just 12.5 per cent came from work with over 50 per cent coming from other social welfare schemes such as illness benefit, jobseekers benefit and assistance, invalidity and carers, indicating that significant numbers of people are leaving the workforce for a variety of reasons well in advance of State pension age.

In terms of social welfare supports available to those at age 65, all short term social welfare schemes are payable to age 66. 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). Each application for any social welfare scheme is assessed on its own merit in terms of qualifying criteria and contribution history.

There are two other related provisions; one provides that in the case of a job seeker’s benefit recipient aged under 65 whose claim spans from one benefit year into another, a new relevant tax year requirement is not applied in the case of the job seekers entitlement relating to the second benefit year. A further provision states that 3 waiting days do not have to be served for jobseekers assistance in the case of certain people aged between 65 and 66 years who have been in receipt of job seekers benefit within the past year

In addition, as part of Budget 2014, I was happy to be able to introduce new arrangements for older jobseekers, i.e. those aged 62 and over who have left work before reaching the State pension age of 66 and who wish to claim a jobseeker’s payment.

With effect from 1 January 2014, fully unemployed jobseekers aged 62 or over will be placed on yearly signing and will be given the option of transferring to EFT payments. Furthermore, they will not be subject to mandatory activation measures but may avail of employment supports which will continue to be available to them and they will not be subject to activation-related sanctions.

Finally social welfare supports will continue to be available to those who need it most and where a person fails to meet the qualifying conditions of an insurance based scheme, a means tested assistance payment may be available provided they satisfy the qualifying conditions including a means test.

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