Written answers

Wednesday, 11 December 2013

Department of Social Protection

State Pension (Contributory) Eligibility

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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85. To ask the Minister for Social Protection the reason this Deputy, who has asked to restore the State pension (transition), has been refused, as the least the Government should do is increase the amount of jobseeker's benefit to be equal to the contributory State pension for persons aged 65 years; and if she will make a statement on the matter. [53274/13]

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. 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.

Where individuals exit the workforce prior to pension age they may seek the support of either the jobseeker’s benefit or jobseeker’s allowance schemes. Jobseeker's benefit is a weekly payment to people out of work and covered by social insurance and legislation provides that, subject to the person having paid 156 or more qualifying contributions and satisfying the general scheme conditions, a person whose benefit expires in their 65th year will continue to be paid benefit up until the age of 66. On this basis, workers who suffer a substantial loss of employment at age 65 will generally be able to claim jobseeker’s benefit for the full year to age 66 provided they have paid at least 156 qualifying contributions. Jobseeker’s benefit is a substantial support to persons suffering the contingency of involuntary unemployment. Changes to rates of jobseeker’s benefit would be a matter for Government to consider in a Budgetary context and there are no plans in this regard at present.

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