Dáil Éireann Debate, Tuesday - 18 September 2012
851. Deputy Willie O'Dea asked the Minister for Social Protection her plans to address concerns among women affected by changes to the State contributory pension that came into effect on 6 April 2012. [38916/12]
Amharc ar fhreagraThe 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. Because 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. That is why there have been a number of changes to State Pension, including the move to 520 paid contributions from April 2012 as one of the qualifying conditions for State pension. People who leave the workplace for homemaking/caring purposes can, if eligible, avail of the homemakers scheme which helps to provide a higher rate of pension for those who meet the qualifying conditions.
It is important in assessing any rates of payment, that we focus on the real impact of social welfare payments. In this regard, it should be noted that older people do not experience the levels of poverty that existed in the past. This can be clearly seen in a wide range of data such as the significant reduction in the ‘risk of poverty’ rate from 27.1% in 2004 to 9.6% in 2010. The consistent poverty rate over the same period also declined from 3.9% to 0.9%. If one examines deprivation rates from a gender perspective, it can be seen that in 2009, the deprivation rate of older men at 7.6% was lower than the deprivation rate of older women at 11.1%. However, in 2010 this pattern has reversed and the data now shows us that older women suffer lower rates of deprivation at 6.9% compared to 11.8% for older men. Women who do not qualify for a pension or are affected by other changes to State pension may, if their spouse is in receipt of a State pension contributory, receive a qualified adult payment at a higher rate where they satisfy a means test. A State pension non-contributory, which is a means tested payment, may also be payable.
The Actuarial Review of the Social Insurance Fund shows that, notwithstanding the changes in the contribution rules and associated rates of payment introduced in September 2012, those with lower earnings and those with short contribution histories can fare better than those with full contribution histories, which is of particular importance to women. The report also shows that the Fund provides better value to female than to male contributors.
