Written answers

Tuesday, 22 March 2022

Department of Employment Affairs and Social Protection

State Pensions

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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47. To ask the Minister for Employment Affairs and Social Protection the steps that she will take in relation to the recent review of pension age that recommended not moving the pension age to the 67th year; and if she will further consider returning the pension age to 65 years in line with many countries across Europe; and if she will make a statement on the matter. [14564/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund.  The 2020 Programme for Government committed that, pending the Commission’s report and any subsequent Government decisions, the State Pension age would remain at 66 years and the increase to 67 years would be deferred.  This was implemented in the Social Welfare Act 2020, which repealed the legislative provisions increasing the State Pension age.

The Pensions Commission’s Report was published on 7th October 2021.  The Report established that the current State Pension system is not sustainable into the future and that changes are needed.  The Report set out a wide-range of recommendations in relation to the State Pension system and Social Insurance Fund, including a recommendation to gradually increase the State Pension age beginning in 2028.  The Report notes that this recommendation is in line with other EU Countries.  In almost every EU Member State, current legislation means that State Pension qualifying ages will rise over the next 50 years.

The Government agreed in October 2021 that the Commission’s report and recommendations would be referred to the Joint Oireachtas Committee on Social Protection, Community and Rural Development and the Islands and also to the Commission on Taxation and Welfare for its views.  The Committee published its views on the 2nd February 2022 and the Commission on Taxation and Welfare submitted its comments on the PRSI related recommendations at the end of February.  These various views will be carefully considered as part of our deliberations over the coming weeks.

In the interests both of older people and of future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically.  My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system.  I think it is really important that we complete that work before reaching conclusions on any one recommendation such as the recommendation to gradually increase the State Pension age.  In this regard, I intend bringing a recommended response and implementation plan to Government in April.  

As the bedrock of the pension system in Ireland, the State Pension is very effective at ensuring that our pensioners do not experience poverty.  This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.

I hope this clarifies the matter for the Deputy.

Photo of Jennifer Murnane O'ConnorJennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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48. To ask the Minister for Employment Affairs and Social Protection the status of the report of the Pensions Commission including their proposals to remove the PRSI exemption on supplementary pensions; and if she will make a statement on the matter. [14825/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Pensions Commission’s Report was published on 7th October 2021.  It established that the current State Pension system is not sustainable into the future and that changes are needed.  The report set out a wide-range of recommendations in relation to the State Pension system and Social Insurance Fund, including potential PRSI base broadening measures.

In the interests both of older people and future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically.  

The Government agreed in October 2021 that the Commission’s report and recommendations would be referred to the Joint Oireachtas Committee on Social Protection, Community and Rural Development and the Islands and also to the Commission on Taxation and Welfare for its views.  The Committee published its views on the 2nd February 2022 and the Commission on Taxation and Welfare submitted its comments on the PRSI related recommendations at the end of February.  All of these various views will be considered as part of our deliberations over the coming weeks.

My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system.  I think it is really important that we complete that work before reaching conclusions on any one recommendation such as the Commission's recommendation to remove the exemption to pay PRSI on supplementary pension income, occupational and personal pensions and public sector pensions.  In this regard, I intend bringing a holistic recommended response and implementation plan to Government in April.  

As the bedrock of the pension system in Ireland, the State Pension is very effective at ensuring that our pensioners do not experience poverty.  This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.

I hope this clarifies the matter for the Deputy.

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