The Irish Congress of Trade Unions (ICTU) has called for an end to forced retirement and a return to a full State retirement pension at age 65. In a submission to a public consultation run by the Pensions Commission, ICTU also supports a flexible pension age, the return of the Pension Reserves Fund, and an increase in employers’ PRSI contributions.

It also argues against the privatisation of the long-awaited auto enrolment scheme, which would give all employees access to an occupational pension with contributions from workers, their employer and the State.

The Pensions Commission launched its consultative process in February, with a view to looking at ways to ensure the long-term sustainability of State pensions and the social insurance fund.

Fórsa official Billy Hannigan said that the union strongly supported the ICTU submission, and has been advocating for its recommendations for some time.

“Congress and its affiliates have long advocated for income support for working people in retirement,” he said.

The submission makes a strong case against the privatisation of the auto-enrolment pension scheme, which has long been seen as an essential tool in ensuring people have enough to live on in retirement. Ireland is currently the only OECD country lacking a mandatory occupational pension for its workforce.

“Congress is calling for the auto-enrolment scheme to be managed and paid out as a pay-related top-up benefit on the contributory State pension to auto-enrolled beneficiaries. This has the potential to transform the State pension, so that pensioners avoid poverty and maintain their pre-retirement standard of living,” he said.

The ICTU submission calls for a full retirement pension at age 65. The age for eligibility for the State pension was increased to 66 in 2014, though plans to raise it to 67 from this year have been suspended.

While the benefit payment for 65 year olds, introduced earlier this year, was signaled as progress, unions criticised the fact that it’s €45 a week less than the State pension.

“This leaves low-income retirees, who do not have a supplementary pension, dependent on a subsistence benefit that is significantly below the poverty line. This has to be rectified,” said Billy.

The Commission on Pensions is due to report its findings, options and recommendations to the social protection minister by the end of June.

Read ICTU’s submission HERE. 

It’s never been more important – or easier – to get the protections and benefits of union membership. Join Fórsa HERE or contact us HERE.