Dáil Éireann Debate, Tuesday - 15 May 2018
539. Deputy Tony McLoughlin asked the Minister for Employment Affairs and Social Protection the percentage rate of pension that would be payable for new applicants post-2020 (details supplied); and if she will make a statement on the matter. [20990/18]
View answerThe Roadmap for Pensions Reform 2018-2023 confirmed the Government’s position that the State pension will be reformed and will remain as the fundamental basis of the pension system in Ireland. To do this, the Government will introduce from 2020 a ‘Total Contributions Approach’ (TCA) for the State Pension (Contributory). The TCA is advanced as a more logical and transparent system, where the individual’s lifetime contribution will more closely match the benefit received. The TCA will ensure that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines their final pension outcome.
The model of TCA which will be in place for all new pensioners from 2020 will be decided upon following a period of public consultation that will be launched shortly. As the outcome of this process and the Government decision and legislation which will follow it cannot be pre-empted, I cannot say how particular sets of circumstances may be affected. However, I can say that the percentage rate paid to pensioners will vary depending on their PRSI records.
I hope this clarifies the matter for the Deputy.
