Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

242. To ask the Minister for Social Protection the various changes in eligibility criteria for persons applying for the State pension (contributory), introduced since budget 2012 to date in 2015; the reason these changes were introduced; and if she will make a statement on the matter. [22112/15]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

State pensions account for the single largest block of social welfare expenditure. This year, the Department of Social Protection will spend an estimated €6.675 billion on pensions – 34.4% of all welfare expenditure. Maintaining the rate of the State pension and other core payments is critical in protecting older people from poverty.

With increases in life expectancy, more people are thankfully living to pension age and living longer in retirement, with the result that average pensions will be paid for longer periods than they are at present. In addition, the number of pensions is increasing by approximately 17,000 annually as a result of demographic change. This combination has obvious and significant implications for the future costs of State pension provision with substantial year-on-year increases being required. Accordingly, to make the State pension system sustainable in the context of these considerable demographic changes and to facilitate a longer working life, a number of reforms to State pensions have been introduced as follows –

- The Social Welfare and Pensions Act 2011 provided 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.

- 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, new rate bands for State pension were introduced from September 2012. 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 provided for 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.

In line with the abolition of State pension (transition) all short term social welfare schemes are payable to age 66. In this context, the main social welfare payment available to those who leave employment before pension age is jobseeker's benefit. Each application for any social welfare scheme is assessed on its own merit in terms of qualifying criteria and contribution history. 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). 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 jobseeker's 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 jobseekers benefit within the past year.