Written answers

Wednesday, 29 April 2015

Department of Social Protection

Pension Provisions

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
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42. To ask the Minister for Social Protection if she received the petition of the deferred Irish aviation superannuation scheme pensioners highlighting the effects that this is having on relevant persons' lives; and if she will make a statement on the matter. [16901/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I am very aware of the issues arising and very negative consequences caused by the problems in the IASS scheme for all its members. However, you will appreciate that the funding difficulties in this scheme are primarily a matter for the Trustees, the companies participating in the scheme, the scheme members and the Pensions Authority.

The Pensions Act provides a framework for the regulation and supervision of occupational pension schemes. A number of changes have been made to the Pensions Act in recent years to assist employers and trustees respond to the funding difficulties encountered by many pension schemes. As you are aware the Pensions Act was amended in 2009 and again in 2013 to broaden the options available to trustees of pension scheme in the context of a restructure of scheme benefits. These changes provided for the sharing of the risk of underfunding in a scheme across all scheme members. The manner in which these options are exercised is a matter for the trustees of a scheme who are required under trust law to act in the best interest of scheme members and beneficiaries.

I met with the Minister for Transport, Tourism and Sport following the meeting with the deferred IASS Committee to discuss the matters raised by the Committee and specifically the proposals that more funding be made available for the longer serving deferred members. I understand that the Minister engaged further with the employers on the matter.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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43. To ask the Minister for Social Protection when a decision will be made on whether a person (details supplied) in County Monaghan will be made to retire or if other arrangements will be made; if her Department recognises that it has responsibility for this issue; if representations have been received on this issue; and if she will make a statement on the matter. [16906/15]

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 began in January 2014 with the standardising of State pension age for all at 66 years and the cessation of State pension transition. The State pension age will increase to 67 years in 2021 and to 68 years 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. Over time, the age for State pension (contributory) was reduced to 66 years.

While it is hoped that, where appropriate, workers will choose and be able to work to pension age and beyond if that is there choice, it is recognised that for some this is not viable and there are measure to support them in such circumstances. All short term social welfare schemes are payable to age 66.

Specifically, in relation to jobseekers benefit and jobseekers allowance, there are a number of transitioning provisions applying in the case of people who are aged between 65 and 66. These include the following –

- Jobseekers whose benefit expires in their 65th year will continue to be paid benefit up until the age of 66.

- Where the claim of jobseekers benefit recipients claims spans two benefit years, a new Governing Contribution Year requirement is not applied in the case of the jobseeker’s entitlement relating to the second benefit year of a claimant aged 65 (effectively this means that they may receive payment in both years based upon eligibility in the first year).

- A further provision states that 3 waiting days do not have to be served for jobseeker’s allowance purposes in the case of certain people aged between 65 and 66 years who have been in receipt of JB within the past year.

With reference to the matter of retirement age, there is no legally mandated retirement age in the State, and the age at which employees retire is a matter for the contract of employment between them and their employers, whether they are in the public or private sector. The Deputy may wish to note that Departments of Public Expenditure & Reform and Environment, Community & Local Government are responsible for the terms and conditions of employment and pensions of civil and public servants, including the age at which they may be required to retire. I am informed by the Department of Public Expenditure and Reform that the specific compulsory retirement age and minimum pension age provisions which affect individual public servants will reflect their particular employment sector and time of original recruitment. Where public servants are required to retire at age 65, they will generally qualify for a public service pension, which they can draw from that date.

Representations from Mr Matt Carthy MEP were forwarded to the Minister for Environment, Community and Local Government for attention and direct reply.

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