The State pension will rise to €300 per week Fianna Fail vowed today in a package of pension measures which sparked a bitter exchange with Fine Gael.
The foundations for the State's economic success had been built by people who are now retired but who deserve to "share in Ireland's progress", Minister for Social & Family Affairs Seamus Brennan said.
"This is why we are saying that pensions are a core priority for the next five years," he added.
The Government had twice exceeded their commitment to increase pensions which had on average risen €11 annually, he added.
He said that under the last Fine Gael/Labour coalition, the average increase had been €3, which if maintained would have led to pensioners receiving €73 less.
Mr Brennan claimed that although the measure would be expensive it had been budgeted for.
He also proposed increasing the mandatory retirement age to 70 but Fine Gael Finance spokesman Richard Bruton attacked his plans for an SSIA-type scheme to encourage greater pension uptake.
Mr Bruton said the plan to offer qualifying people at least €1 for every €4 was not costed and not accounted for in Fianna Fail's budgetary projections.
He said a similar plan proposed by the PDs in which the State would contribute €1 for every €2 saved, was costed by the Department of Finance at €450 million per year.
"FF is making pension promises that it has no intention of keeping, or else, in an act of desperation, it has just blown a half a billion euro hole in its budgetary plans, thereby bringing the government finances into deficit by 2012," Mr Bruton said.
Mr Brennan later responded by challenging Mr Bruton to a debate on pensions saying Fine Gael had ignored the issue in the Contract for a Better Ireland,launched by party leader Enda Kenny yesterday.
The cost of the scheme "fits within the context of the existing €2½ billion per annum which goes on pension tax relief".