New pensions commission established by the Government

The Government has approved the establishment of a new commission on pensions, which will examine the sustainability of state pension arrangements and look into pension eligibility.

The Government has approved the establishment of a new commission on pensions.

The commission will examine the sustainability of state pension arrangements and look into pension eligibility. 

The new group will be chaired by Ms Josephine Feehily, who was chair of the Office of the Revenue Commissioners and chair of the Policing Authority of Ireland.

The commission will submit a report on its work and make recommendations to the social protection minister by June 30 2021.

"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," said Ms Feehily, the chair of the new commission.

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."

Meanwhile, Social Justice Ireland (SJI) has said the commission should consider a universal, state social-welfare pension to eliminate old-age poverty. 

SJI say this could be paid for through changes to the structure of pension tax reliefs and a modest increase in PRSI.

"Making entitlement to the state pension universal, and paying it at the current rate of the state pension (contributory), which is €248 a week, would close the gaps in coverage that exist," said Dr Seán Healy, director of SJI.

"The commission should be given an additional mandate to look into this idea.

"Fewer women than men qualify for the state pension and those who do tend to receive less. Often, these are women who have spent their lives in caring roles — something government needs to value more than it does," said Dr Healy.

"At the moment, the entire thrust of pension policy in Ireland seems to be focused on the private sector, and how expanding coverage there will reduce reliance on the State in retirement,"  said Eamon Murphy, economic and social analyst at SJI.

This has involved directing very expensive tax breaks towards the very profitable private-pensions industry

"While, in theory, this makes sense, the only way this policy can save the State money is if the plan is to erode the long-term value of the state social-welfare pension — something that should be strongly opposed," Mr Murphy said.