Tuesday, 11 June 2019

Questions (906)

Michael McGrath

Question:

906. Deputy Michael McGrath asked the Minister for Employment Affairs and Social Protection if a person (details supplied) in County Cork will be included in the review of pensions under the total contributions approach. [23802/19]

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 person concerned applied for and was awarded a reduced rate State pension (contributory) in 2013. However as they were already in receipt of an increase for qualified adult on their spouse's pension at a more beneficial rate their State pension (contributory) was withdrawn.

The person concerned has 707 reckonable paid contributions, which combined with the maximum permissible number of HomeCaring periods and reckonable credits (1,040, as set out in legislation) results in a payment rate of 83.99% of the maximum rate of pension. The person is already in receipt of the equivalent to 89.6% of the maximum rate of pension, (or €222.50 per week), so is better off to remain as a qualified adult on their spouse's pension.

A review outcome letter has issued to the person concerned, which includes a copy of their social insurance contribution record.

I hope this clarifies the matter for the Deputy.