Pension Provisions

Dáil Éireann Debate, Tuesday - 7 November 2017

Tuesday, 7 November 2017

Questions (1280)

Bernard Durkan

Question:

1280. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the extent to which she will review the current system used in the calculation to entitlement to contributory old age pension to address the imbalance whereby persons with fewer contributions can receive a higher payment than those with a considerably higher number of contributions to ensure that equity prevails, particularly for those disadvantaged by method of calculation; and if she will make a statement on the matter. [47113/17]

Written answers

Minister for Employment Affairs and Social Protection

The national pensions framework proposed that a total contribution approach should replace the yearly average approach. Under this approach, the rate of pension paid would more closely reflect the total number of contributions, and anomalies of the nature raised by the Deputy would no longer arise.

The position of those who have gaps in their records is being carefully considered in developing this scheme. It is expected that this approach to pension qualification will replace the current one from 2020 or thereabouts. The recently completed Actuarial Review of the Social Insurance Fund provided my officials with costings of various options under this reform, which are being considered at present.

Following a consultation process, I will submit a proposal to Government seeking approval for the new approach.

I hope this clarifies the matter for the Deputy.