Dáil Éireann Debate, Wednesday - 10 May 2017
146. Deputy Willie O'Dea asked the Minister for Social Protection the cost of changing the calculation system for contributory pensions by halving the threshold to qualify for a pension from 520 contributions, which it is as present, to 260 contributions; and if he will make a statement on the matter. [22290/17]
Amharc ar fhreagraA number of significant reforms to State pensions were introduced in recent years which have allowed my Department maintain the value of the State pension, and indeed increase it in the last two Budgets. With effect from April 2012, the number of paid contributions required to qualify for a State Pension increased from 260 paid contributions to 520 paid contributions. At the time this measure was introduced, the annual Exchequer savings were expected to be in the region of €6m per annum but rising substantially on a cumulative basis in the long term. Therefore, the true figure now would be significantly higher. However, as people with 260-519 paid contributions no longer make claims to SPC, the data is not available to update this costing.
Officials of my Department are currently working on the detailed development of the Total Contributions Approach (TCA) with a view to making proposals for consideration later in the year. This is a very significant reform with considerable legal, administrative, and technical elements in its implementation.
I hope this clarifies the matter for the Deputy.
