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  3. CONGRESS CONDEMNS STATE PENSION "DIKTAT"

CONGRESS CONDEMNS STATE PENSION "DIKTAT"

February 11, 2015

The Irish Congress of Trade Unions has condemned the imposition "by diktat" of changes to the State Pension Age, saying it will see "citizens being deprived of a significant benefit they earned and paid for."

Speaking before the Joint Committee on Public Service Oversight & Petitions, Congress official Fergus Whelan said:

'this hasty arbitrary diktat, we are told, was agreed with the Troika. There was no political debate; no public consultation and no cost benefit analysis of the measure. There was no consideration given to the significant labour market issues involved. Neither was there thought given to issues of fair play, or equity, or minimising hardship to those worst affected.

Changes to the State Pension will see the qualifying age rise to 67 in 2021 and 68 in 2028.

Mr Whelan told the Committee that there been no explanation given as to why Ireland should have the highest public pension age in the EU.

"No information was given to the workers who are set to lose circa €12,000, €24,000 or €36,000 (in today's money and depending on their age). Almost 15% of salary was paid on their behalf in Pay Related Social Insurance (PRSI) over the years (i.e. employer/employee contributions). Many of these workers also worked and paid taxes throughout their working lives. They are now victims of a decision made by people who will suffer no loss but rather continue to enjoy good pensions from age 65 and younger," he said.

'this measure is not designed to help older workers stay in work and employers and unions were given no opportunity to consider the complex labour market issues involved.

"Congress holds that people should be free to work longer if they wish but should not be obliged to, in order to avoid poverty. No provision has been made to facilitate workers remaining in employment after age 65. Congress asked the Department of Social Protection, who sponsored the legislation, if it would continue to terminate its employees at age 65 regardless of whether they qualify for a State pension. We got no answer," Mr Whelan said.

 

 

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