Dáil Éireann Debate, Tuesday - 18 September 2012
850. Deputy Willie O'Dea asked the Minister for Social Protection the estimated savings from the changes to the State contributory pension scheme that came into effect on 6 April 2012; and if she will make a statement on the matter. [38915/12]
Amharc ar fhreagraBecause the State pension is a very valuable benefit it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. The sustainability of pensions into the future is important given the changing demographics, the increased numbers of those over 65 and increased longevity and reduced dependency ratio. That is why there have been a number of changes to State pension including the long heralded move to 520 paid contributions from April 2012 as one of the qualifying conditions for State pension. In terms of savings, based on the current levels of new claims, the savings are expected to be in the region of €6m per annum. This reflects the change in the qualifying rules with a requirement to have a minimum of 520 (ten years) paid contributions. The means tested State pension (non- contributory) will be available for those with an income need.
