Dáil Éireann Debate, Thursday - 8 March 2018
610. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the way in which the 40 years social insurance contributions needed to receive a full State pension was arrived at for the new total contributions approach as detailed in the Roadmap for Pensions Reform; and if she will make a statement on the matter. [11673/18]
Amharc ar fhreagraThe Roadmap for Pensions Reform 2018-2023 sets out how we intend to implement the Total Contributions Approach (TCA) to calculating entitlement to the State pension (contributory) from 2020 onwards. Subject to finalisation of the scheme design following a public consultation, it is intended that the TCA will offer a full State pension to all people with a full record of 40 years social insurance contributions with pro-rata payments for people with less than 40 years of contributions. People who have to take time out of the workforce to take up caring duties will be eligible to accumulate up to 20 years credits towards meeting the full 40 year contribution record. Similarly, unemployed people and others with an entitlement will, as now, be able to get credited contributions provided that they have a minimum number of paid contributions.
The model proposed in the National Pensions Framework in 2010 required 30 years of contributions, but had a cap of 10 years for credits, including Homemakers credits. It also did not recognise home-making periods before 1994. These factors meant that such a model would be disadvantageous to women who had significant periods outside the workforce raising children.
The 40 year proposal allows for 20 years of credits, including HomeCaring Credits and crucially, removes the limitation on these HomeCaring periods before 1994 that was included in the 2010 plan. The current proposal is far more gender balanced, and supports our policy of making the State pension adequate, sustainable and equitable. A former home-maker can qualify for a maximum rate pension with only 20 years contributions under this system. It also allows a person qualify for a maximum rate pension with 30 years of paid contributions and 10 years of ordinary credits, even if they had no home-making periods over the course of the 50 years between age 16 and state pension age.
I hope this clarifies the matter for the Deputy.
