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State Pensions

Dáil Éireann Debate, Tuesday - 13 November 2018

Tuesday, 13 November 2018

Questions (594)

Bernard Durkan

Question:

594. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the degree to which efforts are being made to award State pensions to those men and women whose contribution record was interrupted for family or other reasons; and if she will make a statement on the matter. [47208/18]

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Written answers

A 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. In advance of this, on 23 January last, the Government agreed to allow pensioners, born on or after the 1st September 1946, affected by the 2012 changes in rate bands, to have their state pension (contributory) entitlement calculated under an interim “Total Contributions Approach” (TCA). The changes also provide for up to 20 years of home caring periods in the calculation of that entitlement, for those who took time out of the workplace for parenting children under age 12, or individuals who needed increased levels of care.

The changes apply to those who reached pension age on or after 1st September 2012 who were awarded less than maximum rate, on post Budget 2012 rate bands. The changes do not apply to anyone already entitled to maximum rate state pension (contributory).

Currently there are approximately 79,000 pensioners in this category and my Department is now in the process of issuing Information Letters to them.

Work on examination of the social insurance records of the pensioners concerned commenced in September. As social insurance records are unique to individual pensioners, this manual examination phase is expected to continue to the end of the year. To date, over sixty temporary staff members have been recruited to work on this phase. Further recruitment will take place in January 2019 when the first pension reviews are expected to get under way and it is anticipated that the first review outcomes will be notified to pensioners during Quarter 1 2019.

Payment of increases, where awarded, will be made immediately after an individual's review is completed. If a pensioner does not qualify for an increased rate, they will continue to receive their existing rate of entitlement.

I hope this clarifies the matter for the Deputy.

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