Jack Chambers (Dublin West, Fianna Fail)
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317. To ask the Minister for Social Protection his plans to address the existing situation whereby some public sector workers must retire at 65 years of age but cannot qualify for the old age pension until 67 years of age; and if he will make a statement on the matter. [30385/16]

Leo 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 to 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 legally mandated 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 Department of Public Expenditure & Reform is responsible for the terms and conditions of employment and pensions of public servants, including the age at which they may be required to retire.

I am informed by the Department of Public Expenditure and Reform that the specific compulsory retirement age and minimum pension age provisions which affect individual public servants will reflect their particular employment sector and time of original recruitment. However, I understand that such public servants will, generally, be paid a public service pension upon reaching their respective retirement age, whether or not they have reached the age which applies for the State pension.

Whether someone will qualify for a State pension at age 66, or for an alternative social protection payment aged 65, will depend on a number of factors, including their personal circumstances. In particular, it will depend upon whether their PRSI contributions were at the full rate - which provides for State pension coverage - or at a modified rate which does not, and which would often be associated with public servants.

There are specific measures which apply to someone claiming jobseeker’s benefit from a date after their 65th birthday. Where qualified, these recipients may continue to be eligible for that payment until reaching pension age.

An interdepartmental group on fuller working lives was chaired this year by the Department of Public Expenditure and Reform, and it reported in August. Any question regarding the retirement age of public servants, and their public service pension arrangements, may be addressed to the Minister for Public Expenditure and Reform.

I hope this clarifies the matter for the Deputy.