Dáil Éireann Debate, Thursday - 1 July 2021
158. Deputy Pauline Tully asked the Minister for Social Protection the efforts she has made in respect of implementing a total contribution approach to the contributory pension system; when this system will be introduced; if this will include a provision for credited contributions that ensures that persons who take time out of the workforce to care for children and loved ones are not disadvantaged; and if she will make a statement on the matter. [35355/21]
View answerA policy to introduce the Total Contributions Approach (TCA) to pensions calculation was adopted by Government in the National Pensions Framework in 2010, as was the decision to base the entitlements of all new pensioners on this approach from around 2020.In advance of this, in January 2018, the Government introduced an interim “Total Contributions Approach” (TCA) which includes up to 20 years of new HomeCaring periods. This provision for the HomeCaring Periods Scheme fundamentally changed the entitlement of many who spent time out of the workforce caring for others. It, for the first time, acknowledged home caring periods prior to 1994. Interim TCA provides for up to 20 years of home caring periods to be considered. Those who have a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of credits/homecaring periods, qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. As part of the Programme for Government, a Commission on Pensions was set up to look at sustainability and eligibility issues with the State Pension and the Social Insurance Fund. As part of this it is examining options to meet the Government commitment to introduce a Total Contributions Approach aligning a person's contributory pension more closely with the contributions they make. This will include a provision for credited contributions, ensuring that people who take time off work to care for loved ones are not disadvantaged. The Commission will outline options for the Government to address issues such as qualifying age, contribution rates, total contributions and eligibility requirements when it has concluded its deliberations. The Commission is due to report on its findings in the near future.I hope this clarifies the matter for the Deputy.
