Fórsa has expressed concern that over 350,000 pensioners could be hit with PRSI for the first time under new proposals from the Pensions Commission. It has recommended the removal of the exemption on PRSI payments for people aged 66.
The union says that, if adopted, this approach would unfairly affect certain groups of pensioners, including public service pensioners with occupational pensions worth less than the State pension rate.
The Pensions Commission report, published last week, also recommends a delay in the proposed increase age of eligibility for State pension. The commission now says this should be introduced much more gradually over a longer period of time.
This is an improvement on previous Government policy, though the pension age would still rise to 67 and 68 for most people over time. The key recommendation is that the state pension will not reach the age of 67 until 2023.
The Irish Congress of Trade Unions (ICTU) also voiced concerns over the implementation of PRSI to certain groups. Its general secretary Patricia King said that she was concerned that the removal of the PRSI exemption could unfairly and disproportionately affect certain groups of pensioners.
The incremental rise in the pension age is the option favoured by the Government and a sub-committee has been established to report back in six months on the best way to do so.
The Pensions Commission report addressed many issues raised by trade unions. It is now with the Government, which must decide which recommendations to implement.
You can read the full Report and Executive summary by clicking here.
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