Written answers

Wednesday, 24 June 2015

Department of Social Protection

Pre-Retirement Allowance

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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60. To ask the Minister for Social Protection if she will consider the reinstatement of the pre-retirement allowance for persons over 55 years of age; and if she will make a statement on the matter. [25350/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Since the 4th July 2007, Pre-Retirement Allowance was abolished for new customers. However, customers who were already in receipt of Pre-Retirement Allowance on that date continue to receive payment as long as they satisfied the conditions for payment.

There are currently 5.3 people of working age for every pensioner and this ratio is expected to decrease to approximately 2.1 to 1 by 2060. The over 65 year old population is projected to increase from 11% of the total population in 2010 to 15% in 2020, and to 24% in 2060.

The Actuarial Review of the Social Insurance Fund projects that without action to tackle a shortfall, the deficit will increase significantly over the medium to long term to €3bn for 2019 and € 25.7bn for 2066. It is in this context, and mindful of the importance of maintaining the adequacy of the rate of the State pension, that a number of reforms have been introduced, in order to provide for sustainable pensions and to facilitate a longer working life.

State pension age is being increased in three separate stages. In 2014, the State pension age was standardised at 66 by the abolition of the State pension (transition). The pension age will be increased to 67 in 2021 and 68 in 2028. It is anticipated that this rate of increase in pension age will be no faster than the rate of increased longevity. It is also anticipated that the duration of a typical State pension may continue to increase, albeit more slowly than if these increases in pension age were not provided for.

Where individuals are out of employment prior to pension age they often seek the support of either the jobseeker’s benefit or jobseeker’s allowance schemes. Legislation provides that a person must satisfy the conditions of being available for and genuinely seeking work in order to be entitled to jobseeker’s benefit or jobseeker’s allowance. Any person who fails to satisfy these conditions is not entitled to a jobseeker’s payment.

People in receipt of a jobseeker's payment must engage with the Department's activation measures and can face sanctions if they fail to do so. However, since January 2014, these criteria have been eased for people aged 62 and over. They are able to avail voluntarily of an array of supports from the Department if they wish to return to work, training or education but sanctions are not applied to this cohort, should they decide they do not wish to engage with the activation process.

Special arrangements were also made so that this cohort of jobseekers register with their local office once a year and their payments can be paid directly into their bank accounts.

In light of these reforms there are no plans to reintroduce the Pre-Retirement Allowance scheme for new entrants.

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