People aged 65 will no longer have to sign on or be genuinely seeking work to receive social welfare income support in the year between retirement and qualifying for the State pension, Minister for Social Protection Heather Humphreys has announced.
The new "Benefit Payment for 65-year-olds" will apply to people aged between 65 and 66, "who cease employment, whether voluntarily or otherwise".
However, while most recipients will not see any financial gain, they will no longer have to comply with the jobseeker's requirement to sign on the Live Register, be genuinely seeking work, and avail of labour activation measures.
They will also be able to engage in educational programmes while receiving the benefit.
The new payment will be paid at a flat rate of €203 per week, equivalent to the maximum Jobseeker's Benefit rate, which individuals currently claim between retirement at 65 and the State pension kicking in at 66.
Eligibility depends on the individual's PRSI contributions, and applications can be made online.
In 2014, the qualification age for the State pension was increased to 66, though a further move to 67 due to take effect last month was deferred following political and trade union campaigns.
Many retirees forced to retire at 65 because of the terms of their employment contracts had described those requirements to sign on pending eligibility for the State pension as demeaning.
The department said it was notifying eligible individuals of what it called this "relaxation" of the conditions applying to their claims, with around 2,000 existing customers expected to qualify for the new payment immediately.
Minister Humphreys noted that for many people, because of their contract of employment, retiring at 65 is their only option.
"These are people who have been working all their lives and, for many, finding new employment can be difficult.
"As minister I want to be able to provide them with some certainty and peace of mind," she said.
She noted that the Programme for Government committed that "65-year-olds who are required to or chose to retire early can receive an 'Early Retirement Allowance or Pension' at the same rate as Jobseeker's Benefit without a requirement to sign on, partake in any activation measures, or be available for and genuinely seeking work".
Ms Humphreys said the independent Commission on Pensions is currently examining various other issues in relation to the State Pension, and is due to make recommendations to her by June.
The department confirmed those issues include retirement ages specified in employment contracts that are below the State pension age, and how the pension system can provide adequate cover for carers.
Other issues to be considered include "sustainability, eligibility and cross generational equity issues, and consideration of options for the Government to address issues including qualifying age, contribution rates, total contributions and eligibility requirements".
ICTU's Head of Social Policy and Employment Affairs said the announcement addresses just one part of the public anger following the decision to increase the pension age.
Speaking on RTÉ's Today with Claire Byrne, Dr Laura Bambrick said people felt humiliated at being forced to sign on for Jobseeker's Benefit and say they were actively seeking work, after a lifetime of working.
She said a pensions commission is due to report on the future sustainability of the State pension later this year.
'No dignity in having to wait' - Sinn Féin
Sinn Féin TD Louise O'Reilly has said that what Minister Humphreys has done today is "nothing short of disgraceful". 16.36
Speaking on RTÉ's Drivetime, she said people want the right to retire if that is what they want to do when they reach the age of 65.
"You're talking about people who have worked for 50 years and the Government hand them what is effectively a jobseeker's payment or the dole," she said.
"When you have reached the age of 65, when you have been working for 50 years or more, you have more than earned the right to be able to retire with a bit of dignity and with access to the full State pension rate."
Ms O'Reilly said there is "no dignity in having to wait" for what you feel is your entitlement.
She said it would be a "huge difference" to those individuals, but a "relatively modest" amount of money.
In the case of each person, she said, you are talking about €45 per week that is the difference between the pension and the jobseeker's rate.
She said the Government does not seem inclined to listen to people.
"I think what the minister has done today is nothing short of disgraceful," she said.
"She's made an announcement that people are entitled to exactly what it is that they're getting at the moment and she somehow expects that they will be fooled by her saying it's a new benefit payment."
