Tuesday, 21 May 2019

Questions (625)

Eugene Murphy


625. Deputy Eugene Murphy asked the Minister for Employment Affairs and Social Protection the method of calculation conducted in the 2012 pension review of a person (details supplied); if this method of calculation differs from other persons in the pension review process; and if she will make a statement on the matter. [21517/19]

View answer

Written answers (Question to Employment)

Since late September 2018, my Department has been examining the social insurance records of approximately 90,000 pensioners, born on or after 1 September 1946, who have a reduced rate State pension contributory entitlement based on post Budget 2012 rate-bands.  These payments are being reviewed under a new Total Contributions Approach (TCA) to pension calculation which includes provision for homecaring periods.

The same methodology applies to all claimants where modified insurance is used in their State pension (contributory) entitlement calculation.

As there are mixed social insurance contributions in the case of the person concerned, the rate of pension is calculated using a two step process.  Firstly, all the person's social insurance contributions, HomeCaring Periods and credited contributions are treated as if they were full-rate Irish contributions to establish their theoretical rate of pension.  Next, the actual rate of pension is determined by the percentage of their record represented by full rate social insurance contributions (including their HomeCaring periods).  Following review,  using this two steps process, the weekly rate of pension of the person concerned increased to €207.20, or 83.41% of the maximum rate of state pension contributory.

A review outcome letter was sent to the person concerned outlining their increase in rate and included a copy of their social insurance record.  Arrears of payment backdated to 30 March 2018 have also been paid. 

I hope this clarifies the matter for the Deputy.