Written answers

Tuesday, 22 March 2016

Department of Social Protection

State Pensions Payments

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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21. To ask the Minister for Social Protection the options available to persons who have to retire at 65 years of age but who will not qualify for a State pension until they are 66 years of age or 67 years of age after 2021, given the abolition of the State transition pension; her plans to review this position; and if she will make a statement on the matter. [4965/16]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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At the outset, the Deputy should note that there is no general 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.

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 current provisions, which apply to someone claiming jobseeker’s benefit from a date after their 65 birthday, is that they may continue to be eligible for that payment until reaching pension age. While this is currently up to their 66 birthday, this approach will continue to extend their jobseeker’s benefit entitlement continuing for another year when the pension age rises to 67, and indeed a further year when it rises to 68 in 2028. This eligibility is of course still subject to satisfying conditions such as the ‘genuinely seeking work’ condition.

From January 2014 jobseeker activation criteria were eased for people aged 62 and over. They are still able to avail voluntarily of an array of supports, which are available from this Department if they wish to return to work, training or education. However, sanctions will not be applied to this cohort, should they decide they do not wish to engage with the activation process.

Special arrangements have also been made so that the majority of older people in receipt of a jobseeker’s payment will have to register with their local office only once a year and their payments will be paid directly into their bank accounts. These provisions have enabled these individuals to ease their transition into one of the jobseeker’s schemes until they become eligible for a State pension on their 66th birthday.

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