Dominic Hannigan (Meath East, Labour)
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122. To ask the Minister for Social Protection her plans in Budget 2015 to fix an anomaly in the pension system where someone who is contractually obliged to retire at 65 only receives the jobseeker's allowance until they turn 66; and if she will make a statement on the matter. [34043/14]

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 OECD report on the Review of the Irish Pension System confirms that the reforms that have been introduced are necessary if we are to continue to put pension provision on a sustainable footing given increased life expectancy, the deficit in the Social Insurance Fund, and the increasing cost of pensions into the future.

The Social Welfare and Pensions Act 2011 provides that State pension age will be increased gradually to 68 years. State pension age was increased to 66 and will increase further to 67 in 2021 and 68 in 2028.

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. 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. 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 aged between 65 and 66 years who qualify for a jobseeker’s benefit are generally entitled to receive payment up to the date on which they reach pensionable age (66 years). In the case of a jobseeker’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.

I was happy to be able to introduce new arrangements in Budget 2014 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 or activation-related sanctions but may avail of employment support

The Deputy may wish to note there is no statutory compulsory retirement age for employees in Ireland. Responsibility for setting retirement age is a matter for the employer/employee relationship and the contract of employment.

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.