Dáil Éireann Debate, Thursday - 4 October 2018
224. Deputy Danny Healy-Rae asked the Minister for Employment Affairs and Social Protection if the inequality and injustice experienced by women within the pension system will be addressed (details supplied); and if she will make a statement on the matter. [40380/18]
View answerThere are a number of payments and pensions paid by my department to people over State pension age. One of these is the State pension (contributory), qualification for which is based on a number of criteria.
As a general policy the Government intends to introduce a Total Contributions Approach (TCA) to establishing level of entitlement for all new state pension contributory claims from 2020 onwards (TCA2020). I launched a public consultation on this proposal earlier this year in May, which closed last month. 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 contributions a person could avail of, the provision of homecaring periods and whether there would be a "phase-in period" for the changes.
Following examination and consideration of the submissions to the consultation, my officials will prepare proposals for the design of the new approach for consideration by the Government in due course.
In the interim, on 23 January last, this Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated on a Total Contributions basis, including provision for up to 20 years of a new home caring credit.
My Department will be writing to impacted customers in the next two months to explain to them what is happening and how the process of review will work. As I have stated previously, it is planned to commence these reviews before the end of this year, with the first payments being made in the first quarter of 2019, backdated, where relevant, to the end of March 2018, or later where a person attained their 66th birthday since that date.
It is not necessary for people to contact the Department on this matter. Once the legislation is enacted and the systems and processes are ready, my Department will then write again to the people impacted and provide them with the opportunity to have their pension calculation reviewed.
The Deputy should note that for those who do not qualify for the State Pension (contributory) (SPC), because they have paid few or no contributions into the Social Insurance Fund, there are other state pension payments available. Notably, they may qualify for the State Pension (non-contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC. If their spouse has a contributory pension, they may qualify for an increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC pension.
It’s worth noting that the marriage bar describes a rule that existed in most of the public service, and some private sector employments, where women were required to leave their employment upon marriage. As it was a rule rather than a general legal prohibition against employing married women, they could either return to work or take up other work, and many did. It is also worth remembering that most public servants recruited prior to 1995 are not entitled to the State pension, regardless of gender and marital status. Therefore, the marriage bar would not generally have negatively impacted on State pension entitlement, as they would not have qualified for that payment had they remained in public sector employment. The implications it had for public service pensions are a matter for the Minister for Public Expenditure & Reform.
I hope this clarifies the matter for the Deputy.
