Written answers

Wednesday, 5 February 2014

Department of Social Protection

State Pensions Reform

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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85. To ask the Minister for Social Protection further to Parliamentary Question No. 3725/14 in respect of a person (details supplied) in Dublin 7, the options available to them in respect of State pension on the basis that they are obliged by their employer to retire aged 65 years; and if she will make a statement on the matter. [5754/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Increasing State pension age and the abolition of the State pension (transition), from January 2014, 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.

Depending on the person’s pension scheme, he may be entitled to an occupational pension at age 65 and he should contact his employer in this regard. 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 payment available on leaving employment before pension age is jobseeker’s benefit. Existing legislation provides that jobseekers whose benefit expires in their 65th year will continue to be paid benefit up until the age of 66, subject to the general scheme conditions.

The Department has put in place new administrative arrangements to ease the transition from the labour force into retirement and to support those who are no longer eligible for State pension (transition). For people aged 62 or over who are claiming Jobseeker’s Benefit or Allowance, they will no longer be required to engage with the activation process and will not be subject to penalty rates for non-engagement. However, they can, on a voluntary basis, avail of all supports available in training or employment support programmes.

In addition, signing period will be reduced to a yearly signing arrangement for this age group and most will be transferred to Electronic Fund Transfer (EFT) payments so payment can be made directly into their bank account.

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