Dáil Éireann Debate, Tuesday - 28 November 2017
661. Deputy Thomas Pringle asked the Minister for Employment Affairs and Social Protection the way in which the total contributions approach to the calculation of the State pension, contributory, from 2020 will be carried out; and if she will make a statement on the matter. [50330/17]
View answer678. Deputy Brendan Smith asked the Minister for Employment Affairs and Social Protection the status of the commitment to remove the anomalies in the method of calculation of entitlements to the State contributory pension; and if she will make a statement on the matter. [50660/17]
View answerI propose to take Questions Nos. 661 and 678 together.
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 Social Insurance contributions made by a person throughout her or his working life and the anomalies of the Yearly Averaging method of calculating entitlement would be removed. It is expected that this approach to pension qualification will replace the current one from around 2020.
A proposal for the precise method of how the Total Contributions Approach will be implemented is currently being finalised by officials in my Department, having recently received the Actuarial Review of the Social Insurance Fund 2015. When this has been finalised, I intend to consult with relevant stakeholders before a decision in made on the final proposal by Government. That proposal will then be subject to the legislative process which may result in further changes.
I hope this clarifies the matter for the Deputies.
