The government has published the euphemistically titled ‘Report of the Interdepartmental Group on Fuller Working Lives’ which attempts to address the issues thrown up by longer lifespans, future changes to the age at which the state pension becomes payable, and demographic pressures on the state pension scheme.
In this instance, a ‘fuller’ working life translates into a 'longer' working life, as the main conclusion of the report is “that if the increases in the state pension age are not matched by longer working, future incomes for those retiring before reaching the age of eligibility for the state pension will become an increasingly prevalent issue, with implications across a number of policy areas”.
According to the report: “Ireland should be a society that explores the opportunities associated with longer, fuller working lives by preparing properly for population ageing and supporting older people’s continued engagement in economic and social life. To that end a shift in ‘cultural norms’ around retirement age is needed on all sides.”
Public spending minister Paschal Donohoe (pictured) oversaw the working group, which stated that “in a positive ageing environment, workers should, to the greatest extent possible, be facilitated with the option to work beyond normal retirement age. This should be done with a degree of flexibility and certainty for staff which should be clearly communicated by management.”
The report recognised that training and other supports for older workers may be needed to enable them to remain active participants in the labour market and in communities, with all actors – state, employers and workers themselves – having responsibilities in this area, with the social welfare system continuing to provide a safety net “for those who, for health or other reasons, are not in a position to work longer”.
Minister Donohue commented: “This is an important piece of work. People are, thankfully, living longer and healthier lives and this trend will continue into the future. An ageing population does creates challenges as well as opportunities that need to be explored. We need a policy framework to support those who want to continue to make an active contribution throughout their lives, including through work. Together with the National Positive Ageing Strategy, the recommendations set out in this report will help us to achieve that.”
The group made recommendations which will be implemented by the relevant departments:
- The Department of Jobs, Enterprise and Innovation is to ask the Workplace Relations Commission to prepare a code of practice around the issue of longer working.
- Employers should take steps to ensure that their policy on retirement age is clearly articulated.
- Employers and workers representatives should take measures to improve awareness among both workers and employers of options, rights and responsibilities around longer working.
- The Department of Public Expenditure and Reform is to review, with public service employers, the barriers to extended participation in the public service workforce up to the age of entitlement to the State Pension.
- The Department of Justice is to ask the Human Rights and Equality Commission to ensure that appropriate guidance material is made available to employers on the use of fixed-term contracts beyond normal retirement age.
- The Department of Education is to request Solas (The Further Education and Training Authority) and the Education and Training Boards to develop solutions tailored to the needs of older workers in order to support them in staying attached to the workforce.