Taoiseach Micheál Martin has accused Sinn Féin of “deliberately not telling the truth” in relation to the Government’s new pension proposals.
It comes after Sinn Féin leader Mary Lou McDonald described the plans as a “scam” and that it was a “Trojan horse” designed by Fianna Fáil and Fine Gael “to move the pension age to 70 by stealth”.
Mr Martin said in the Dáil people get “very anxious and very worried” when politicians tell “barefaced lies” and that politicians should not do so.
He said the pension age would remain at 66 and accused Ms McDonald of “not telling the truth” in her presentation of the Government’s latest plans.
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Earlier, Minister for Social Protection Heather Humphreys said voters “gave their verdict” on increasing the pension age in the last election, which must be respected.
Announcing a range of pension reforms, which will see a sliding scale introduced with those working up to age 70 enjoying higher pension payments, Ms Humphreys said a clear message had been sent by voters when raising the pension age became a major election debate.
“I’m very conscious that the public gave their verdict in the last election on increasing the pension age and we must respect that,” she said.
Under the reforms agreed by the Cabinet on Tuesday, the payment of the State pension will be determined by lifetime rather than average annual contributions, while carers will enjoy better access to pension benefits.
The Coalition also signalled commitments on so-called “mandatory retirement” and improving terms for those who worked in physically demanding jobs.
There was praise for the measures from stakeholder groups representing older people, carers and unions.
Age Action welcomed reforms that will see a sliding scale introduced allowing for higher pension payments to those who work longer, while also raising concerns about those in arduous work being unable to work until 70 and therefore being unable to avail of a higher rate of pension.
Siptu praised the decision to keep the pension age at 66, saying it was a vindication of its campaign. Family Carers Ireland welcomed reforms that will allow carers better access to the State pension, including the introduction of an approach which determines the level of payment based on total contributions across someone’s working life which “offers better protections to carers caring for shorter periods”.
Government figures believe that increases in PRSI will ultimately be levied on both employers and workers — but that the predicted surplus of up to €3 billion in the social insurance fund at the end of this year reduces the pressure to do so quickly.
Ms Humphreys said a 0.1 per cent increase in PRSI contributions across the board would bring in about €210 million per annum for the social insurance fund, which pays for the State pension.
However, there was criticism of the Government for not raising the pension age on a gradual basis, most notably from the Irish Fiscal Advisory Council (Ifac), which said large increases in PRSI were now likely.
“The Government is making commitments around the pension age without having figured out the rest of it,” Ifac chairman Sebastian Barnes said.
Dr Barra Roantree, an ESRI researcher and pensions expert, said there was a concern that PRSI increases might only be levied on workers, as opposed to employers or the self-employed as has been recommended. “The risk then is the entire burden falls on the current working-age population. Down the line that’s not sustainable, our demographics are changing in such a huge way,” he said.
Mairéad O’Mahony, head of wealth solutions at insurer Aon Ireland, said the failure to increase the retirement age beyond 66 was a “missed opportunity”.
“Generational inequity will only get worse over time with an ever-increasing burden placed on younger workers as our population ages,” she said.
