Dáil Éireann Debate, Wednesday - 24 March 2021
961. Deputy Willie O'Dea asked the Minister for Social Protection if the rate of contributory old age pension paid to a person (details supplied) will be reviewed; if the person is entitled to change status credits given that they returned to the workplace in October 1991; the basis on which their pension has been calculated; and if she will make a statement on the matter. [14067/21]
View answerThe person concerned reached pension age on 18 December 2013. According to the records of my Department, at that time they had a total of 1,075 qualifying full-rate paid and credited contributions from their date of entry into insurable employment on 24 January 1967 to end-December 2012. This equated to a yearly average of 23 contributions and gave them an entitlement to a standard State pension (contributory) at 85% of the maximum rate. They were notified in writing of this decision on 11 July 2013.
Since the person concerned was employed in the public sector from 1967 to 1982, during which period modified contributions were payable, their entitlement to a mixed insurance pro rata State pension (contributory) was also determined, based on their combined modified and full-rate social insurance records. However, that rate of pension entitlement was determined as lower than their current pension rate.
An interim Total Contributions Approach (TCA) was introduced in January 2018 as an alternative to the ‘yearly average’ method of calculating pension entitlement for those State pension (contributory) customers born on or after 1 September 1946 and therefore affected by post-2012 Budget pension rates. The TCA provides for up to 20 years of HomeCaring Periods in their pension entitlement calculation for applicants who took time out of the workplace for parenting or caring duties.
When the person’s pension entitlement was assessed under the TCA, there was no change in rate, which remained at 85% of the maximum pension rate. They were notified in writing of this decision on 16 September 2020.
On 30 November 2020 the person requested a review. The Records Section of my Department investigated the insurability of the person’s Class J employment prior to 1991/92, to ascertain if further contributions could be awarded on their social insurance record. The Class J social insurance contributions were not insurable and as a result some credits were removed which changed the person’s yearly average from 23 to 22. Their revised social insurance record is a total of 1,057 qualifying full-rate paid and credited contributions. However, since the yearly average remains within the 20-29 rate band, the person’s pension entitlement is unchanged.
Change of Status credits were awarded in the 1990/91 year but not in the 1991/92 year as the date of entry of employment in the 1991/92 year is not available in my Department’s records. If the person concerned provides a statement from their employer confirming the date this employment commenced, their pension claim can be reviewed. However, it should be noted that any additional credits for the year in question will not increase the current rate of pension, based on the 20-29 rate band.
The person concerned is currently in receipt of the maximum rate payable, based on the social insurance record held by my Department.
I hope this clarifies the position for the Deputy.
