Cabinet to discuss establishment of pensions commission

The Cabinet meets this morning with Social Protection Minister Heather Humphreys expected to bring a memo proposing the formal establishment of a Commission on Pensions.

Under the Coalition’s programme for government, the pension age will be maintained at 66 pending the completion of the Commission’s work – a position confirmed in last month’s Budget speech by Minister for Public Expenditure Michael McGrath.

Ms Humphreys is due to publish the relevant legislation in the coming weeks, however, the membership of the Commission should be made public later today.

It is expected to include representation from workers groups, employers, civil society, as well as academics.

The plan is for the Commission to submit a report to the Ms Humphreys in the middle of next year, which will include recommendations on how to proceed with this highly controversial question.

The previous government had planned to increase the age of retirement to 67 next year, and 68 in 2028, a proposal which became a major issue in this year’s general election.

When negotiating a programme for government, Fianna Fáil, Fine Gael and the Greens agreed on a compromise in which the pension age remain at 66 until the Commission on Pensions completed its work. 

The last government estimated the cost of not increasing the pension age next January at €221m. 

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