Tuesday, 25 Sep 2018

Written Answers Nos. 493-507

Invalidity Pension Applications

Questions (493)

Pat Breen

Question:

493. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection the status of an application by a person (details supplied); and if she will make a statement on the matter. [38675/18]

Written answers

Minister of State at the Department of Employment Affairs and Social Protection

The lady referred to has been awarded invalidity pension with effect from the 2nd August 2018. Payment will issue to her nominated account on the 11 October 2018. Any arrears due from 2nd August 2018 to 11th October 2018 (less any overlapping social welfare payment) will issue in due course. The lady in question was notified of this decision on the 21st September 2018.

I hope this clarifies the matter for the Deputy.

Disability Allowance Applications

Questions (494)

Pat Breen

Question:

494. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection the status of an application by a person (details supplied); and if she will make a statement on the matter. [38676/18]

Written answers

Minister of State at the Department of Employment Affairs and Social Protection

The person concerned has been awarded disability allowance (DA) with effect from 26 September 2018 as they are currently in receipt of another social welfare payment at a higher rate than their DA entitlement. The first payment will be made by their chosen payment method on 26 September 2018 .

I trust this clarifies the matter for the Deputy.

Pensions Reform

Questions (495)

Clare Daly

Question:

495. Deputy Clare Daly asked the Minister for Employment Affairs and Social Protection if she is satisfied that the public consultation process with regard to pension reform has been conducted in line with the Open Government Partnership National Action Plan 2016-2018 and the Department of Public Expenditure and Reform's consultation principles and guidelines. [38704/18]

Written answers

Minister for Employment Affairs and Social Protection

My officials are well aware of the Open Government Partnership National Action Plan 2016-2018 and the consultation principles and guidelines set out in the Department of Public Expenditure and Reform's document in September 2016. I am satisfied that the public consultation processes with regards to pensions reform are being conducted with due regard to the guidelines and principles.

My Department fully complied with the consultation principles set out below:

The first of principle is that consultation with the public must be genuine, meaningful, timely, balanced and with the ultimate objective of leading to better outcomes and greater understanding by all involved of the benefits and consequences of proceeding with particular policy or legislation proposals. Consultation should aim to achieve real engagement and ‘real listening’ rather than being a pro-forma exercise for bureaucratic purposes. A genuine consultation process ensures that the real-world impact of policy options is considered.

The second principle is that consultation should be targeted at and easily accessible to those with a clear interest in the policy in question. There is no ‘one size fits all’ approach to consultation. The size, type and scope of the consultative process depends on the proposed policy, the type and scale of the potential impacts of the proposal or decision being taken, the number of people or groups affected by them, and where relevant particular requirements of the child and young people and those who may be marginalised or vulnerable.

The third principle is that Government departments and agencies should make systematic efforts to ensure that interested and affected parties have the opportunity to take part in open consultations at all stages of the policy process on significant policy, services and legislative matters: development, implementation, evaluation, and review.

For example in relation to the reform of the State Pension (Contributory), the policy to introduce the Total Contributions Approach (TCA) to pensions calculation was adopted by Government in the National Pensions Framework in 2010, as was the decision to base the entitlements of all new pensioners on this approach from around 2020. The 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.

The Government intends to introduce the TCA to establishing level of entitlement for all new state pension contributory claims from 2020 onwards and I launched the public consultation on this proposal in May. My Department invited sectorial interest groups representing pensioners, workers, employers, young people, the unemployed and more. Members of the media were also invited and the launch was featured extensively throughout the broadcast and written media in the days that followed. The consultation was hosted on the Department's website and open to everyone to submit responses and submissions. The consultation sought input on a range of relevant factors which included the amount of contributions needed for a full rate contributory state pension, the amount of credited contribution a person could avail of, and whether there would be a "phase-in period" for the changes.

The online consultation lasted for over 3 months and we received over 270 responses. The consultation closed on Monday, the 3rd of September. An analysis of the views submitted is now being undertaken and feedback will be published on the Department's website. Following this a review of the consultation process will be carried out which will consider whether the objectives of the consultation have been met, including whether the methods used were appropriate to the objectives and the cost-effectiveness of the consultation process. It will also identify any lessons learned to inform future consultation processes.

I hope this clarifies the matter for the Deputy.

Pensions Reform

Questions (496, 497)

Clare Daly

Question:

496. Deputy Clare Daly asked the Minister for Employment Affairs and Social Protection if she will re-run the public consultation process with regard to pension reform in view of the perceived serious inadequacies of the current consultation process. [38705/18]

Clare Daly

Question:

497. Deputy Clare Daly asked the Minister for Employment Affairs and Social Protection if her attention has been drawn to the fact that the online briefing document Total Contributions Approach Consultation 2018 contains significant and serious errors which give a distorted impression of the changes brought about by the TCA 2012 system (details supplied). [38706/18]

Written answers

Minister for Employment Affairs and Social Protection

I propose to take Questions Nos. 496 and 497 together.

A policy to introduce the Total Contributions Approach (TCA) to the State Pension contributory (SPC) calculation was adopted by Government in the National Pensions Framework in 2010, as was the decision to base the entitlements of all new pensioners on this approach from 2020.

The Roadmap for Pensions Reform 2018-2023 confirmed the Government’s position to reform the State pension in line with the Total Contributions Approach.

A public consultation on the introduction of the Total Contributions Approach to be designed for the periods from 2020 was launched on May 28th. This is distinct from the TCA2012 model announced in January this year which will be available for those affected by the 2012 rate-band changes.

My Department invited interest groups representing pensioners, workers, employers, young people, the unemployed and several other areas to the launch event at which we provided a range of informative presentations and hosted a series of workshops on the various aspects of the proposed reform. Members of the media were also invited and the launch was featured extensively throughout the broadcast and written media in the days that followed. The online consultation lasted for over 3 months and we received nearly 300 responses from individuals and organisations.

The consultation questionnaire was accompanied by a document setting out the context of the consultation. In Appendix 1 of this document there is a table setting out the illustrative entitlements under different state contributory pension approaches - the yearly average approach, the National Pensions Framework approach and the TCA2012 approach. It did not include a model for TCA2020 as that model has not yet been decided.

The Deputy is correct in stating that two of the figures given under the TCA2012 approach in the hypothetical cases are incorrect. I am advised that this inaccuracy was a result of an error in a formula that was used to calculate the outcomes. I apologise for this. I understand that this matter came to light very shortly before the public consultation closed, when a member of the public who had spotted it called an official in my Department.

I do not believe that this has resulted in those who answered the consultation being misled about the provision for credits in the TCA2012 model. In the main body of the document, the chapter “Models of TCA” highlights the primary policy levers within a TCA framework, and the second one listed said “The amount of ordinary credited contributions that could be used (10 years in NPF and TCA2012)". People reading the document would therefore be aware that this limit would apply, and how it would impact upon entitlements. The table in the appendix was added for illustrative purposes only. It was also made clear that the TCA2012 model was not being proposed for TCA2020, and it warned that amounts in the table may depend upon a number of factors.

I do not propose to delay either the introduction of the TCA2012 model, or the progress towards TCA2020, on the grounds set out by the Deputy. Both of these reforms will be introduced via legislation, and the policy choices about the balance between paid contributions, credited contributions and periods caring in the home in calculating entitlements will, I believe be broadly debated by members of the Oireachtas. An amended copy of the table, with outcomes under the final TCA2020 model will be made available in due course, and I can assure the Deputy that there will be no error in that version.

Regarding the contributory pension outcomes under TCA2012, it is true that a person who has spent most of their working age life in receipt of Jobseekers payments, and only 15 years paying into the Social Insurance Fund (as in these hypothetical examples cited by the Deputy), would have a significantly lower contributory pension entitlement than someone who had paid into the Social Insurance Fund for 40 or more years. In most countries, that is how contributory pensions work. However, in most cases, a person in Ireland who received jobseekers payments for most of their adult lives would be entitled, upon reaching State pension age, to a State pension (non-contributory), at 95% the maximum rate of a contributory pension. Consequently the amounts cited by the Deputy as being lost by these pensioners would not arise, except in a very small minority of cases, where a person paid very little into the Social Insurance system, was unemployed for most of his/her life, had no homecaring periods, and yet retired with very significant additional means which made them better off than most pensioners. I think most people would agree that this is very uncommon, and there is not a strong case for such pensioners to be cross-subsidised by others, most of whom have less means, and who have contributed more into the Social Insurance Fund over the years.

The TCA2020 consultation process is now complete, and officials in my Department are analysing the inputs made by those who participated. A summary of these will be published on my Department's website in due course when this work is complete. I am told that a number of submissions stressed the importance of credited contributions, among other matters (notably the total number of contributions required, and the possibility of transitional measures for those who reach pension age soon after 2020), and I will consider the points made in the context of finalising the design for Government's consideration.

Following this, a review of the consultation process itself will be carried out which will consider whether the objectives of the consultation have been met, including whether the methods used were appropriate to the objectives and the cost-effectiveness of the consultation process. It will also identify any lessons learned to inform future consultation processes.

I hope this clarifies the matter for the Deputy.

Pensions Reform

Questions (498)

Clare Daly

Question:

498. Deputy Clare Daly asked the Minister for Employment Affairs and Social Protection if her attention has been drawn to the fact that up to 20 years of homecare credits can be used under the 40 year TCA 2012 while there is a limit of ten years for other credits such as unemployment and illness in contrast to the National Pensions Framework, which envisaged a standard approach applying to the various categories of persons that receive credited contributions; her views on this provision; and if she will make a statement on the matter. [38707/18]

Written answers

Minister for Employment Affairs and Social Protection

The National Pensions Framework (2010) proposed that a “Total Contribution Approach” (TCA) should replace the yearly average approach, for new pensioners from 2020. The aim of this approach is to make the rate of contributory pension more closely match contributions made by a person.

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. In particular it will benefit people whose work history includes an extended period of time outside the paid workplace, while raising families or in a full-time caring role.

This approach will make it easier for many post-2012 pensioners affected by the 2012 rate band changes who are currently assessed under the yearly average model, to qualify for a higher rate of the State Pension (contributory). A person who reached pension age after 1st September 2012 and has a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of the new HomeCaring periods, will qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. Up to 10 years of other credits, for example, awarded when on Jobseekers or Illness Benefit, may also be used, subject to the total of such credits and HomeCaring periods not exceeding 20 years.

So, for example, a person might receive a maximum pension based on 20 years paid PRSI contributions, 5 years jobseeker credits, and 15 years HomeCaring Credits (before or after 1994), over a 50 year period and qualify for a maximum rate pension, despite additional gaps of up to 10 years. Those with fewer contributions will have a pro-rata entitlement. For example, someone with 18 years PRSI contributions and 18 years homecaring may qualify for a 90% contributory pension.

As the Deputy has pointed out, the National Pensions Framework proposals would have treated homemaking credits and ordinary credits with a standard approach. However, while it is true they would be counted in the same manner, the conditions of their awarding significantly differed. Under the Framework, homemaking credits would only have had effect from 1994, with both types of credits being limited to 10 years, and outcomes for women under this model would have been significantly worse than those for men. It was decided, therefore, that there should be a rebalancing of the proposed TCA formula, with up to 20 years homemaking periods being recognised under TCA2012, for periods both before and after 1994.

I hope this clarifies the matter for the Deputy.

Illness Benefit Appeals

Questions (499)

Bernard Durkan

Question:

499. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection if eligibility will be reviewed in the case of a person (details supplied); if the case will be reviewed with a view to issuing a payment in the early future; and if she will make a statement on the matter. [38708/18]

Written answers

Minister for Employment Affairs and Social Protection

The Illness Benefit claim from the person concerned has been processed and the original notification issued to inform the customer that he did not qualify for payment under the scheme. Unfortunately, the incorrect disallowance reason was entered onto the notification letter and the Department sincerely apologises for any upset this may have caused.

An updated letter has issued to the person concerned to inform the customer that he does not qualify for payment under the scheme as a result of insufficient PRSI contributions.

Should the person concerned be in need of financial assistance, he should contact his local Community Welfare Service at his local Intreo Centre. Should he have any further information to support his Illness Benefit claim, my Department will be happy to consider that so that a further review can be carried out.

I hope this clarifies the position for the Deputy.

Disability Allowance Applications

Questions (500)

Aengus Ó Snodaigh

Question:

500. Deputy Aengus Ó Snodaigh asked the Minister for Employment Affairs and Social Protection the status of an application for disability allowance by a person (details supplied); and when a decision on the case will issue. [38712/18]

Written answers

Minister of State at the Department of Employment Affairs and Social Protection

I confirm that my department received an application for disability allowance from this gentleman on 20 August 2018. On completion of the necessary investigations on all aspects of the claim a decision will be made and the person concerned will be notified directly of the outcome.

The processing time for individual disability allowance claims may vary in accordance with their relative complexity in terms of the three main qualifying criteria, the person’s circumstances and the information they provide in support of their claim.

I trust this clarifies the matter for the Deputy.

Carer's Allowance Applications

Questions (501)

Aengus Ó Snodaigh

Question:

501. Deputy Aengus Ó Snodaigh asked the Minister for Employment Affairs and Social Protection the status of an application for carer's allowance by a person (details supplied); and when a decision on the case will issue. [38713/18]

Written answers

Minister for Employment Affairs and Social Protection

Carer's allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.

An application for CA was received from the person concerned on 20 August 2018. The application is currently being processed and once completed, the person concerned will be notified directly of the outcome.

I hope this clarifies the matter for the Deputy.

Question No. 502 answered with Question No. 475.

Carer's Allowance Applications

Questions (503)

Pat Breen

Question:

503. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection the status of an application by a person (details supplied); and if she will make a statement on the matter. [38719/18]

Written answers

Minister for Employment Affairs and Social Protection

Carer's allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.

An application for CA was received from the person concerned on 24 January 2018.

It is a condition for receipt of a CA that the person being cared for must have such a disability that as a result they require full-time care and attention.

This is defined as requiring from another person, continual supervision and frequent assistance throughout the day in connection with normal bodily functions or continual supervision in order to avoid danger to him or herself and likely to require that level of care for at least twelve months.

The evidence submitted in support of this application was examined and the deciding officer decided that this evidence did not indicate that the requirement for full-time care was satisfied.

The person concerned was notified on 20 July 2018 of this decision, the reason for it and of his right of review and appeal.

Following the submission of further evidence, CA was awarded to the person concerned on 20 September 2018 and the first payment will issue to his nominated bank account on 27 September 2018.

Arrears of allowance due from to 25 January 2018 to 26 September 2018 have also issued. The person concerned was notified of these details on 20 September 2018.

I hope this clarifies the matter for the Deputy.

Carer's Allowance Applications

Questions (504)

Pat Breen

Question:

504. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection the status of an application by a person (details supplied); and if she will make a statement on the matter. [38720/18]

Written answers

Minister for Employment Affairs and Social Protection

Carer's allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.

I confirm that my department received an application for CA from the person concerned on the 9 July 2018.

The application is currently being processed and once completed, the person concerned will be notified directly of the outcome.

I hope this clarifies the matter for the Deputy.

Carer's Allowance Review

Questions (505)

Pat Breen

Question:

505. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection the status of an application by a person (details supplied); and if she will make a statement on the matter. [38721/18]

Written answers

Minister for Employment Affairs and Social Protection

Carer's allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.

A recent review has taken place of the means of the person concerned. The outcome of this review is that the person concerned is entitled to an increase in their CA.

First payment of their increased allowance issued on 13 September 2018.

Arrears of allowance due from 22 March 2018 issued by cheque to the person concerned on 7 September 2018.

The person concerned was notified on 7 September 2018 of this decision the reason for it and of her right of review and appeal.

I hope this clarifies the matter for the Deputy.

Carer's Allowance Applications

Questions (506)

Pat Breen

Question:

506. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection the status of an application by a person (details supplied); and if she will make a statement on the matter. [38722/18]

Written answers

Minister for Employment Affairs and Social Protection

Carer's allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.

I confirm that my department received an application for CA from the person concerned on the 20 July 2018.

Additional information was requested from the person concerned on 20 September 2018. Once the information is received the application will be processed without delay and she will be notified directly of the outcome.

I hope this clarifies the matter for the Deputy.

Illness Benefit Applications

Questions (507)

Pat Breen

Question:

507. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection when an application will be processed for a person (details supplied); and if she will make a statement on the matter. [38725/18]

Written answers

Minister for Employment Affairs and Social Protection

The Illness Benefit claim for the person concerned has been processed and he is in receipt of his full entitlement under the Illness Benefit Scheme. All arrears owing have now been paid.

I hope this clarifies the position for the Deputy.