Launching its baseline position on the National Pensions Framework, Older & Bolder said, while the Government says proposals for pension reform must be affordable and sustainable, the proposals must also meet the criteria of adequacy, security, equity and reciprocity.

The organisation says older people consulted feel that security is the most important of all of these criteria.

The Government is seeking to ensure that the level of the State Pension is maintained at 35% of average weekly earnings, Older & Bolder says the minimum target in the interests of retirees should be 40%, as previously recommended by the Pensions Board. It also says that the State Pension should be universalised, meaning there is automatic entitlement to the full state pension.

When it comes to supplementary private pension schemes, the organisation says there should be a public pension option when automatic enrolment is introduced. This would give people saving into private pensions a choice and mitigate against the high management charges and poor investment performance of Irish pensions during the economic crisis.

Older & Bolder also supports the removal of mandatory retirement ages and feels that the timetable for increases in the qualifying age for the State Pension means that lead-ins are too short. This particularly affects manual labourers and other workers whose jobs are physically demanding. Furthermore, not enough details have been given on flexible working arrangements for older workers, and how they will operate for both employers and employees.

The importance of dealing with legacy issues on pensions was underscored by Margaret O’Leary, a pensioner speaking at the event who had been required to leave paid employment on getting married and as a result, lost her entitlement to the contributory pension.

Speaking at the event, ICTU General Secretary David Begg said that as currently devised, the two-tiered system cannot continue because the second tier is too expensive and too unreliable. It is expensive due to the high management charges of pension providers and huge annuity costs; and unreliable due to volatility in the markets. He outlined three steps the Government should take as part of the reforms:

1.       Extend the de-risking period currently allowed for private pensions in order to reduce volatility.

2.       Issue a Government annuity bond to reduce the high costs of purchasing an annuity for retirees.

3.       Establish a pension protection fund, to provide compensation in the event of employer insolvency. Such a fund already exists in Britain and the absence of a similar scheme in Ireland is currently the subject of a legal challenge.

All speakers at the launch believed that the Government has unfairly not addressed the shortcomings of the past in the National Pensions Framework, and must do so while reforming the system for the future.