Finian McGrath (Dublin Bay North, Independent)
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5. To ask the Minister for Social Protection her views on a matter (details supplied) regarding pension schemes; and if she will make a statement on the matter. [6296/16]

Finian McGrath (Dublin Bay North, Independent)
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6. To ask the Minister for Social Protection her views on a matter (details supplied) regarding the age of retirement and pension; and if she will make a statement on the matter. [6297/16]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 5 and 6 together.

The State pension (contributory) is based on contributions paid and credited over the course of the pensioner’s working years, and the rate of payment is not affected by the receipt of an occupational pension. In contrast, the State pension (non-contributory) is a means tested social assistance payment for people age 66 or over. It is a scheme to help older people with an income need who do not have sufficient PRSI contributions for the State pension (contributory), nor significant income from another source such as a private pension. Neither of these State Pensions are payable below the age of 66, regardless of the person’s savings and/or private pension provision, and so non-qualification as a result of saving into a private pension scheme does not arise. Pensionable age for these schemes has been 66 years since 1977.

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 from 65 for those who satisfied the qualifying conditions, thereby standardising State pension age for all at 66 years, which is the current State pension age. This will increase to 67 in 2021 and 68 in 2028. The changes introduced in 2011 were on foot of a Government commitment included in the National Recovery Plan published in 2010.

The purpose of these changes is to make the pension system sustainable in the context of increasing life expectancy. More people are living to pension age and living longer in retirement. In this context, the duration for which an average pension will be paid will continue to increase. The number of pensions is increasing by approximately 17,000 annually as a result of demographic change. This has significant implications for the future costs of State pension provision.

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.

In terms of financial supports, social welfare benefits will continue to be available to the age of 66 for those who are required to leave employment. Jobseekers whose benefit expires in their 65th year will continue to be paid benefit up until the age of 66. Where a jobseeker’s benefit claim spans two benefit years, a new Governing Contribution Year requirement is not applied 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).

Organisations participating in the JobBridge National Internship Scheme must comply with the scheme criteria. One such criterion is that they must have no vacancies in the area of activity in which the Internship is offered. It is not possible, therefore, for a company to hire such an intern to fill the gap when a person retires.