Sinn Féin has criticised Government plans to introduce a supplementary payment to workers who retire at the age of 65, before they qualify for the state pension.
The plan introduces a new payment for people who retire at 65, before they qualify for the state pension at 66, but at a reduced rate of €203 instead of €248.
Mary Lou McDonald said the plan would cost individuals more than €2,000 in that year, and condemned Fianna Fáil for an apparent U-turn on a pledge made at the last general election.
The Sinn Féin leader referenced a statement by Fianna Fáil’s then social protection spokesman Willie O’Dea three days before the election last February.
It's gold-plated pensions for government politicians, while workers wanting to retire at 65 will be out of pocket €45 a week. The hypocrisy of this government is staggering. – @MaryLouMcDonald #Dáil #RightToRetire #STOP67 pic.twitter.com/qVsA6ixew8
Advertisement— Sinn Féin (@sinnfeinireland) February 10, 2021
Reading from his statement, she said: “Under our proposals people aged 65 will receive a state pension, which will be held at the same rate of the state pension of €248 per week.
“This payment will not be means-tested, entitlement will be based on an individual’s employment record.
“In contrast, Fine Gael will only pay those who are 65 a payment of €203 a week, which will result in an annual loss of €2,340 for this age group.”
She told the Taoiseach during Leaders’ Questions on Wednesday: “You knew at that time the strength of public feeling as regards the access to a state pension for workers when they reach the age of 65.
You have adopted the Fine Gael policy hook, line and sinker
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“But you seem to have forgotten that in the meantime, because your Government’s announcement on state pensions on Monday is exactly what Fine Gael proposed in the course of that election, 12 months ago.”
She said only “enormous public pressure” prevented the Government from raising the state pension age to 67, as had been proposed under Fine Gael.
She added: “You have adopted the Fine Gael policy hook, line and sinker and this is a real blow for 65-year-olds who will rely on a decent pension to get by.
“The lack of fairness, the lack of respect, is absolutely breathtaking, particularly in these times when people are under such enormous pressure.”
Sinn Féin record
The Taoiseach accused Ms McDonald of “extraordinary two-dimensional thinking”, raising Sinn Féin’s record on pensions in Northern Ireland.
He said: “They say one thing in this house and they do the exact opposite in Northern Ireland on the executive.
“You call for a pension age of 65 here. And yet, last October, the exact opposite happened after your party voted for the pension age to be increased from 65 to 66.
“So everything you’ve thrown at us here clearly can be thrown at yourself in respect of what you’ve supported within Northern Ireland.”
Mr Martin said Sinn Féin proposals on fuel allowance and pensions would amount to €4.5 billion in spending.
“That’s just in seven days and that’s just in one Government department” he added.
He said the proposals on the state pension had been negotiated with Fine Gael and the Green party as part of the Programme for Government during the talks that formed the current coalition.
The Pensions Commission has launched its public consultation on State Pensions
This is an opportunity for people to have their say on the future of State Pensions in Ireland
Further information and guidelines for preparing submissions is available here https://t.co/GUQUK2u9of pic.twitter.com/Yls6BCiDyi— Department of Social Protection (@welfare_ie) February 9, 2021
The Taoiseach said it was important to be honest with people that the sustainability of pensions will provide huge challenges to the state in the future.
He said: “The Department of Social Protection this year will spend about €25 billion – over 40 per cent of that, nine billion, will be spent on pension payments alone.
“That is why a commission in respect of pensions has been established.
“It’s looking at the issue of mandatory retirement ages and employment contracts where that age is below the state pension age. It’s due to report back to Government later this year.
“I think it’s important to be honest with people – the sustainability of pensions over the next number of decades will be challenging for the state.”
On Monday, Social Protection Minister Heather Humphreys announced a new “Benefit Payment for 65-year-olds”.
It will apply to people aged between 65 and 66 “who cease employment, whether voluntarily or otherwise”.
It means they will no longer have to sign on, or be genuinely seeking work, to receive the benefit, as was previously the case.
However, they will receive the equivalent of the Jobseekers’ Payment of 203 euro a week, 45 euro less than the state pension rate.
