Dáil Éireann Debate, Tuesday - 7 November 2017
1195. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the persons who will benefit from the total contributions approach; if it will apply to all persons that retire post 2020; and if she will make a statement on the matter. [45840/17]
View answerThe introduction of a Total Contributions Approach to the State Pension (contributory) is being examined by officials in my Department. I expect them to report to me shortly before bringing the matter to Government. Particular attention will be paid to people who have intermittent PRSI records as a result of taking time out of paid employment for caring duties.
The Total Contributions Approach will be a fairer way of calculating entitlement to the State Pension (contributory) and will more closely align that entitlement to a person’s contribution to the Social Insurance Fund throughout their working life.
The exact details of the proposal have to be finalised and the beneficiaries from the approach will depend on the structure of the scheme, notably the number of years required for a full pension and the treatment of credited contributions and homemaking periods. The scheme will apply to all new applicants from its introduction. Any potential transitional measures have not been considered at this juncture. I do not wish to pre-empt the outcome of the consultations that are ahead which may have an impact on the final model chosen.
I hope this clarifies the matter for the Deputy.
