Pension Commission have eight months to compile report

The Government has announced the establishment of a Commission on Pensions to address concerns about funding support for an ageing population.

Under the Coalition's programme for government, the pension age will be maintained at 66 pending the completion of the Commission's work. The previous government planned to increase the age of retirement to 67 next year, and 68 in 2028, a proposal that became a major issue in this year's general election.

The Commission, to be chaired by Ms Josephine Feehily, will examine sustainability and eligibility issues in respect of State Pension arrangements and submit a report in eight months. It will outline options for Government to address issues such as qualifying age, contribution rates, total contributions and eligibility requirements.

The Minister for Social Protection, Heather Humphreys, said the Commission membership will reflect “the wide range of expertise and stakeholder representation” to examine the public and social policy issues involved.

This includes representation of workers, employers, civil society, academics and those with technical and policy expertise.

Minister Humphreys made the announcement of the establishment of the Comission following today’s Cabinet meeting. Minister Humphreys said: “I am very pleased to announce today the establishment of this new Commission on Pensions. We all know how critically important it is to ensure that the State Pension system provides adequate support to people in retirement and that it continues to do that over the long term.

“The Government is acutely aware of the challenges the State faces in terms of ensuring our State Pensions System is sustainable when it comes to managing our public finances. But this is not the only consideration at hand.

“The State Pension is the bedrock of the Irish pension system. It is extremely effective at reducing poverty for pensioners and I want to ensure that this remains the case into the future.”

The Commission will engage with a range of key stakeholders to ensure that it has a genuine understanding of not only the fiscal sustainability challenges involved, but the social sustainability challenges of implementing potential policy reforms.

The exact mechanisms for this engagement will be shaped by the Chair and by Commission members.

In announcing the Chair of the Commission as Josephine Feehily the Minister said: “Josephine Feehily was Chairperson of the Office of the Revenue Commissioners, before serving as Chairperson of the Policing Authority of Ireland.

“She has a wealth of experience and expertise in examining complex policy concerns and progressing reform agendas. I am delighted she has been able to take up the invitation to chair this important task and I look forward to working with her and the Commission over the coming months.”

The new Chair of the Commission on Pensions, Josephine Feehily, acknowledged the sensitivity of the issue saying: “For many, the State Pension represents all or most of their weekly income. It is the main pillar of the Irish pension system. I am conscious that talks of increasing the State Pension age can be a cause of great concern, given that the mandatory retirement age for many in the private sector is 65.

This Commission will examine various options that can help with the sustainability of the State Pension system, not just the pension age. Importantly, it will also consider the impacts of these various options, and will engage with stakeholders as part of its work. I look forward to working with the Commission members on this key policy issue.”

The Commission will submit a report on its work, findings, options and recommendations to the Minister by June 30, 2021.