Dáil Éireann Debate, Tuesday - 22 February 2022
544. Deputy Claire Kerrane asked the Minister for Social Protection if she has considered providing a top-up payment for Irish citizens living in the State and receiving pensions from overseas to bring these payments in line with the standard State pension rate (details supplied); and if she will make a statement on the matter. [9591/22]
View answerThe State Pension (Contributory) is a PRSI-based pension, financed by contributions made by current workers and their employers, and paid to pensioners, at a rate based upon their PRSI record when working. A person is required to have a minimum of 520 paid reckonable PRSI contributions in order to qualify for the State Pension (Contributory). T he actuarial value of the State Pension is estimated at over €300,000 which requires people who claim a contributory pension to have made at least 10 years of paid contributions over the 50 year term of a working life. It is reasonable to require people who seek a contributory pension to have made at least 10 years paid contributions into the Social Insurance Fund which finances it.
Those with fewer than the minimum number of PRSI contributions paid over the years may alternatively qualify for the State Pension (Non-Contributory), which is a means-tested pension, financed by the Exchequer, and paid at up to 95% the maximum rate of the State Pension (Contributory). There are also significant disregards in the household means test for the State Pension (Non-Contributory). Alternatively, if their spouse has a contributory pension, they may qualify for an increase for a Qualified Adult (based on their own means), amounting up to 90% of a full rate State Pension (Contributory). The most advantageous payment for a pensioner will depend upon their individual circumstances.
The State Pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
There are no plans for a top-up payment to be made to those who do not qualify for either the State Pension (Contributory) or the State Pension (Non-Contributory) and it is not clear on what basis such an approach could be considered.
I hope this clarifies matters for the Deputy.
