Written answers

Tuesday, 10 February 2015

Department of Social Protection

State Pensions Payments

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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200. To ask the Minister for Social Protection the measures her Department are putting in place, with respect to the implementation of the increase in the statutory retirement age, as it pertains to current contracts issued to workers, whereby the retirement age is listed as 65 years of age; and if she will make a statement on the matter. [6010/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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In relation to the issue of retirement age, I would like to clarify that there is no statutory compulsory retirement age for employees in Ireland. The setting of retirement age is a matter for agreement within the employer/employee relationship and the contract of employment.

In relation to the age at which a State pension may be payable, the Social Welfare and Pensions Act 2011 provides that State pension age will be increased gradually to 68 years to make the pension system sustainable in the context of ever increasing life expectancy. This began in January 2014 with the abolition of the State pension (transition), thereby standardising State pension age for all at 66 years. State pension age will increase further to 67 in 2021 and 68 in 2028.

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).

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.

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.

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