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State Pension (Non-Contributory)

Dáil Éireann Debate, Tuesday - 18 December 2018

Tuesday, 18 December 2018

Questions (635)

Aindrias Moynihan

Question:

635. Deputy Aindrias Moynihan asked the Minister for Employment Affairs and Social Protection the procedures in place to identify persons on non-contributory pensions who can benefit from the total contributions system being introduced for the post-2012 contributory pensioners; when they will be reviewed; and if she will make a statement on the matter. [53243/18]

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Written answers

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 and 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). The changes also apply to those who have a reduced rate state pension (contributory) entitlement but are currently in receipt of higher rate state pension (non-contributory). My Department is currently identifying these pensioners, born on or after 01 September 1946. Those identified will be part of the review and will be contacted directly in the coming months. Examination of the social insurance records of these pensioners has commenced. As social insurance records are unique to individual pensioners, this manual examination phase is expected to continue for a number of weeks.

The first pension reviews are expected to get under way, following enactment of enabling legislation in quarter 1 2019, with outcomes or requests for further information issuing to pensioners.

Where a higher rate of entitlement is established, the person will be changed over to state pension (contributory) immediately after an individual's review is completed. 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.

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