Responding to the Joint Oireachtas Committee report on the Pensions Commission the Irish Congress of Trade Union social policy officer Dr Laura Bambrick said: Congress is pleased that the Committee has recommended retaining the pension age at 66 for people outside the workforce while giving the right to retire on a full State Pension from age 65 to workers with a long social insurance record, and for new legislation to allow, but not compel, workers to remain in their jobs beyond the retirement age in their employment contract.
Congress was first to identify the need for a European-style flexible pension age and has long argued existing soft measures have proved inadequate for far too many workers who want to stay in their job beyond their contractual retirement age.”Dr Bambrick added: “Congress has never denied the challenge population ageing presents for the public finances if no action is taken. We are however concerned that the Oireachtas Committee is recommending that the future sustainability of the Social Insurance Fund can be addressed, in large part, by changes to tax supports for workers’ saving for retirement.
“The CSO report on pensions coverage last week laid bare the urgent need to introduce auto-enrolment to address income inadequacy for retired workers and to legally compel employers to contribute to their employee’s living standards when too old to work.
The Oireachtas Committee’s recommendations on delaying auto-enrolment, standardising tax relief on pension saving contributions, and removing the exemption on people aged 66 and over to pay PRSI on unearned income, including pensions, could unfairly and disproportionally impact workers on low and modest incomes and certain groups of pensioners.”
“Congress will continue our engagement with our members, Government, and Opposition to ensure the increasing financial costs of the State Pension will be shared fairly and equitably.”
