Written answers

Tuesday, 4 October 2016

Department of Social Protection

State Pensions

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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285. To ask the Minister for Social Protection the detail of the proposals to require those of a pensionable age make a claim for jobseeker's benefit before receiving the State pension; and if he will make a statement on the matter. [28419/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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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, 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.

The Deputy should note that there is no general retirement age in the State, and in the private sector the age at which employees retire is a matter for the contract of employment between them and their employers.

There is no requirement to claim Jobseekers benefit before receiving a State pension, nor is there any proposal to introduce such a requirement. However, if someone who was required to leave employment has yet to reach the State pension age of 66, he or she may make such a claim, if they satisfy the conditions of the scheme.

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 (which effectively means that they may receive payment in both years based upon eligibility in the first year).

I hope this clarifies the matter for the Deputy.

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