Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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137. To ask the Minister for Social Protection if she will outline all changes to the State pension since January 2011; and if she will make a statement on the matter. [12745/14]

Joan 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 began in January 2014 with the abolition of the State pension (transition) available at 65, thereby standardising State pension age for all at 66 years. State pension age will increase further to 67 in 2021 and 68 in 2028. The 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) pension was reduced to 66 years.

In the context of State pension reforms, and in order to provide for sustainable pensions and to facilitate a longer working life, a number of other reforms to State pensions have recently been introduced as follows:

- With effect from April 2012, and as provided for in legislation in 1997, the number of paid contributions required to qualify for a State pension increased from 260 paid contributions to 520 paid contributions.

- As provided for in Budget 2012, from September 2012, new rate bands for State pension were introduced. These additional payment rate bands more accurately reflect the social insurance history of a person and ensure that those who contribute more during a working life benefit more in retirement than those with lesser contributions.

- As announced in Budget 2012, the period for which a claim for State pension can be backdated is six months. This change came into effect in April 2012.

- From December 2013, the number of paid contributions required for Widow’s/Widower’s/Surviving Civil Partner’s pension increased from 156 contributions to 260 contributions.

Following considerable policy analysis, it is planned to introduce a “total contributions approach” to determine eligibility for a State pension. The level of pension paid will be directly proportionate to the number of social insurance contributions made by a person over his or her working life. The proposed date for the introduction of a move to a total contributions approach is 2020, but this may be subject to change. The OECD Review of the Irish Pensions System published in April 2013 will also inform future pension reform over the coming years.

Following the abolition of State pension transition, for those who may be impacted 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.