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Social Protection Minister Joan Burton today published the Social Welfare and Pensions Bill 2012 to give effect to a number of reforms including those in the areas of the One-Parent Family Payment scheme and Defined Benefit Pension schemes. The main provisions in the Bill are the One-Parent Family Payment and Defined Benefit Pensions.

For new applicants, from 3 May, 2012, the maximum age limit of the youngest child for receipt of the OFP will reduce to age 12. This will reduce further to age 10 in 2013 and to age 7 in 2014.

Commenting on the changes, Minister Burton said:

“Changes to the One-Parent Family Payment scheme in the Social Welfare and Pensions Bill 2012 mean that an enhanced level of childcare provision will be required. I am addressing this issue as a matter of priority with the Minister for Children and Youth Affairs”

The number of One-Parent Family Payment recipients has risen by some 25% over the last decade and stood at 90,307 on 31 December, 2011 and the cost of the scheme is estimated to be €1.06 billion in 2012.

Sections 8 to 26 of the bill provide for amendments to the Pensions Act 1990 to provide for the introduction of a risk reserve into the funding standard.

Of this provision, Minister Burton said:

“Defined Benefit schemes are a very important element of pension provision in Ireland and we want them to survive for the future. The sponsoring employer undertakes to deliver a ‘promise’ of a certain level of income to scheme members on retirement. While pension schemes are voluntary and a matter for negotiation between employers and employees, a strong regulatory structure is also needed to protect members.”

Listen to Minister Burton’s doorstep from the ICTU Pensions Conference below.