New pension payment falls short
by Róisín McKane
 
Fórsa official Billy Hannigan has welcomed the scheme, but said it still falls short.
Fórsa official Billy Hannigan has welcomed the scheme, but said it still falls short.

Fórsa has broadly welcomed news that retirees aged between 65 and 66 will no longer have to sign on to receive social welfare income support in the year between retirement and qualifying for the state pension. But the union has criticised the rate at which the benefit will be paid.

 

The benefit, announced by social protection minister Heather Humphries this week, will be paid at a flat rate of €203 per week. That’s equivalent to the maximum jobseeker's benefit rate.

 

Crucially, recipients will no longer have to sign on at a social welfare office to qualify for the payment, and will be free to take up an education course and still avail of the benefit.

 

Until now, workers who had to retire at the traditional retirement age of 65 were left with no option but to sign on and be available for work.

 

Fórsa official Billy Hannigan has welcomed the scheme, but said it still falls short.

 

“For many, due to their contract of employment, retiring at the age of 65 is their only option. After a lifetime of working, “signing on” can be demoralising. We absolutely welcome the measures in the new scheme which addresses this,” he said.

 

Billy expressed disappointment however, at the rate at which this new benefit will be paid, considering that in January 2020 both leaders of Fianna Fáil and Fine Gael committed to introducing a transition payment equal to the value of the old age pension for those forced to retire before qualifying for the State payment.

 

“The difference amounts to €45 less per week, which is €2,355 for the year. It’s disappointing that this it being paid at the same value as Jobseeker’s Benefit and not the State pension, despite a commitment from the then Government in 2020,” he said.

 

Eligibility for the payment is determined by a person’s PRSI contributions, and applications can be made online.

 

For more information on the “New Benefit for 65 Year Olds” click HERE

 

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

 

LikeLike (3) | Facebook Twitter