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Social Welfare Benefits

Dáil Éireann Debate, Thursday - 1 July 2010

Thursday, 1 July 2010

Questions (209, 210, 211)

Terence Flanagan

Question:

209 Deputy Terence Flanagan asked the Minister for Social Protection his plans regarding cuts in the contributory old age pension in the forthcoming budget; and if he will make a statement on the matter. [29146/10]

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Written answers

Social welfare changes for 2011, including any changes to State pensions, will be considered later this year in the context of next year's Budget preparations, having regard both to needs and to the resources available to meet those needs.

The current Government policy in relation to pensions is laid out in the National Pensions Framework which was launched in March of this year. The Government is committed to seeking to maintain the State pension at 33% of average earnings. The framework includes a number of changes to the State pension in order to make it more transparent, simple and equitable for those who reach pension age.

Recognising that people are living longer and healthier lives, the Government has decided to amend State pension age in three separate stages:

In 2014, the State pension (transition) will be abolished. The effect of this will be to standardise State pension age at 66;

In 2021, the State pension age will be set at 67; and

Finally, in 2028, State pension age will be set at 68.

For those people who wish to postpone drawing down their State pension, arrangements will be put in place to enable them to receive an actuarially increased benefit when they decide to retire.

In addition, for those with contribution shortfalls at pension age, arrangements will be put in place to allow them to receive additional benefit at a later date if they continue to make paid contributions for pension purposes while remaining in work or self-employment.

From 2012 social insurance credits will be introduced for people who take time out of the workforce for caring duties. This will replace the current homemaker's disregard and will assist people — particularly women — to qualify for a contributory pension or a higher level of payment.

In addition, from 6 April 2012, and as provided for in legislation since 1997, the minimum number of paid contributions required for State pension (contributory) will increase from 260 to 520.

From 2020, the way in which eligibility for State pension is calculated will be simplified. Specifically, there will be a switch from the way in which pensions are currently calculated over the average working life. Under the new system, the level of pension paid will be based on the total number of social insurance contributions made by a person over his or her working life.

A person will need to make contributions for 30 years to qualify for a maximum pension. Once a person has the minimum number of paid contributions required, he or she will accumulate 1/30th of a pension for each year of contributions up to a maximum 30 years. Upon introduction of the total contributions approach, the maximum number of credits that can be used for pension purposes will be set at 520.

An implementation group for the National Pensions Framework has been established by my Department and this group will work through the relevant issues in implementing the measures contained in the framework.

Jack Wall

Question:

210 Deputy Jack Wall asked the Minister for Social Protection the position regarding an application for rent allowance in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [28832/10]

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The Health Service Executive (HSE) has advised that the person concerned has made an application for rent supplement but that no decision has been made on his application to date. The Executive has further advised that there are a number of outstanding issues in relation to this application that require clarification and they will be in contact with the person shortly.

Seán Ó Fearghaíl

Question:

211 Deputy Seán Ó Fearghaíl asked the Minister for Social Protection if a person (details supplied) in County Kildare, who was in PAYE employment for 22 years, is now entitled to income support; and if he will make a statement on the matter. [28877/10]

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Disability Allowance is a weekly allowance paid to people with a specified disability who are aged over 16 and under 66. The disability must be expected to last for at least one year and the allowance is subject to a medical assessment, a statutory means test and a habitual residency test.

The application for disability allowance, by the person concerned, was disallowed by a Deciding Officer of the Department on the grounds that he did not satisfy the statutory means test.

The Social Welfare Appeals Office has advised me that an appeal was opened on 6 May 2010 and following receipt of the relevant Departmental papers including comments on the grounds of appeal, the appeal from the person concerned will be referred to an Appeals Officer for consideration.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

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