Paul Murphy (Dublin South West, RISE)
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153. To ask the Minister for Enterprise, Trade and Employment his views on the abolition of mandatory retirement; and if he will make a statement on the matter. [39913/24]

Emer Higgins (Dublin Mid West, Fine Gael)
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The Commission on Pensions was established on foot of a 2020 Programme for Government commitment. As part of its work, the Pensions Commission was asked to consider the issue of retirement ages in private employment contracts that are set below the State Pension age. The report of the Commission was published in October 2021.

The option of abolishing mandatory retirement ages entirely was considered by the Pensions Commission. Following their extensive deliberations and examination of a number of options to address the issue of contractual retirement ages, the Pensions Commission decided against the option.

Ultimately their final recommendation, which was accepted by Government, was to introduce measures to align mandatory retirement ages in employment contracts with the State Pension age, age 66.

Complete abolition of any mandatory retirement age exceeds the scope of current Government policy. It would impose a potentially substantial burden on employers, by restricting their ability to plan their workforces, including succession planning and providing promotional opportunities. It would also run counter to recent case law.

In March 2024, Government approved the drafting of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024, which will implement the Pension Commission's specific recommendation.

The purpose of the Bill is to align mandatory retirement ages in employment contracts with the State Pension age, age 66, where an employee does not consent to the mandatory retirement age. This element of consent reflects the fact that many employees may want to retire at the contractual retirement age. The Bill is a priority for publication during the Autumn term.