On 23 January last, the Government agreed to allow pensioners, born on or after the 1 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 1 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).
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 seventy 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 following enactment of the Social Welfare, Pensions and Civil Registrations Bill 2018. In line with this timeframe, it is anticipated that the first review outcomes will be notified to pensioners during Quarter 1 2019.
Pensioners currently in receipt of state pension (non-contributory), who had previously established lower state pension (contributory) entitlements, will be included in the review and will be contacted directly by my Department. They will be paid whichever pension qualifies them for the highest weekly rate of entitlement.
Payment of increases, where awarded, will be made immediately following the completion of an individual's review. Given the numbers involved, it will take my Departments a number of months to work through all the reviews. In all cases, where the outcome of the review results in an increase in state pension (contributory) entitlement, the increase will be backdated to 30 March 2018, or the date of a person's 66th birthday if later, and arrears will be paid.
Personal pension entitlement rates will not be reduced as a result of this review. 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.