John McGuinness (Carlow-Kilkenny, Fianna Fail)
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328. To ask the Minister for Social Protection if he will restore the supplementary State transition pension payment scheme; and if he has established an interdepartmental group to examine this and other matters. [15978/16]

Leo Varadkar (Dublin West, Fine Gael)
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The Social Welfare and Pensions Act 2011 provided for a gradual increase in the State pension age. This process began in January 2014 with the abolition of the State pension (transition) previously available at 65, thereby standardising State pension age for all at 66 years. There are no plans to introduce changes to this legislation which was introduced on foot of a Government commitment included in the National Recovery Plan published in 2010 and in the subsequent Memorandum of Understanding with the EU/ECB/IMF.

Each year more people are living to pension age and living longer in retirement. As a result of this demographic change, the number of State pension recipients is increasing by approximately 17,000 annually. This has significant implications for the future costs of State pension provision which are currently increasing by close to €1 billion every 5 years. The purpose of changes to the State pension age is to make the pension system more sustainable in the context of increasing life expectancy.

In January 2016, and with reference to a number of factors including the increasing age at which a State pension can be drawn, the previous Government established an Interdepartmental Working Group, chaired by the Department of Public Expenditure and Reform, to consider policy that will support fuller working lives. This Group, on which my Department is represented, is examining the implications arising from prevailing retirement ages for workers in both the private and public sectors. I understand the Group is due to report to Government in the near future.

I hope this clarifies the matter for the Deputy.