Written answers

Wednesday, 18 January 2017

Department of Social Protection

Pension Provisions

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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148. To ask the Minister for Social Protection the status of his proposed reforms to pension and retirement policies that would see an end to the compulsory retirement age; the work that has been undertaken by his Department to date; the timeframe for the proposed introduction of this legislation; and if he will make a statement on the matter. [2138/17]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Social Welfare and Pensions Act 2011 provided for the necessary amendments to increase the State pension age in line with the National Pensions Framework as set out in the EU/IMF Programme of Financial Support for Ireland. It provided for an increase in the age for qualification for the State Pension from 66 years to 67 years from 2021, and a further increase to 68 years from 2028. It also discontinued the State Pension (transition) for new claimants with effect from 1 January 2014. As the State Pension (transition) could only be paid if the recipient had retired, and given such a criterion does not apply to the State pension (contributory), this removed a significant disincentive to those who did not wish to retire at State pension age.

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 and 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 that Department that the specific compulsory retirement age and minimum pension age provisions which affect individual public servants reflect their particular employment sector and time of original recruitment.

An interdepartmental group on fuller working lives was chaired last year by the Department of Public Expenditure and Reform to consider policy around retirement age in both the public and private sectors and it reported in August. Any question regarding the work of that group, and the retirement age of public servants, may be addressed to the Minister for Public Expenditure and Reform.

I hope this clarifies the matter for the Deputy.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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149. To ask the Minister for Social Protection the current policy direction in respect of pensions; the status of the Green Paper on pensions and the subsequent consultation process; and the way in which he will proceed in this regard. [2139/17]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Green Paper consultation process commenced in October 2007 and was completed in May 2008 and it formed the basis of the National Pension Framework published in 2010. These reports are available on my Department’s website.

Since its publication many of the areas identified have been subject to legislative change. My Department continues to work to improve the pension’s landscape for Irish people.

Going forward I have already indicated that one of my priorities for 2017 is pension reform. I intend to set out a road map for the reform of the State pension, rationalisation and reform of the pensions landscape arising from the Pensions Authority’s public consultation process, transposition of the EU IORPs II directive, and the design of a universal retirement savings platform for all working people.

I trust that this clarifies the matter for the Deputy.

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