Programme for Government gives commission a year to review proposed increase in pension age

The document reads: "65-year-olds who are required to or choose to retire early can receive an ‘Early Retirement Allowance or Pension’ at the same rate as jobseekers benefit without a requirement to sign on, partake in any activation measures or be available for and genuinely seeking work."

The pension age increase has been deferred pending a new commission, in the new Programme for Government.

The new commission is to "report by June 2021", after which the government will take action on the basis of the recommendations from the commission within six months.

Pending the report of the Commission on Pensions and any subsequent Government decisions on its recommendations, the State Pension age will remain at 66 years.

The document reads: "65-year-olds who are required to or choose to retire early can receive an ‘Early Retirement Allowance or Pension’ at the same rate as jobseekers benefit without a requirement to sign on, partake in any activation measures or be available for and genuinely seeking work."

The Commission will "examine sustainability and eligibility issues with state pensions and the Social Insurance Fund and "outline options for Government to address issues including qualifying age, contribution rates, total contributions and eligibility requirements".

The three parties say this will allow full consideration by Government of any permanent changes.

The move will be seen as a compromise between Fine Gael and Fianna Fáil who battled over the issue in the February election and later in government formation talks.

The issue emerged as under Fine Gael's plan, people at 65 who had been let go from their jobs, could have been forced onto a Jobseekers Payment for one year before accessing their State Pension at 66, despite not technically looking for a job, and having worked their entire lives, which many described as insulting.

The commission proposal had been floated by Fine Gael during negotiations as a way around the issue and had flagged major concerns that in order to meet the rising cost of future State pensions, amid the decline in the ratio of working-age people to pension recipients due to an ageing population, the qualifying age would have to rise.

Minister for Social Welfare Regina Doherty said that if the issue was not remedied "at some point in the future we wouldn’t have the money to pay people’s pensions".