Dáil Éireann Debate, Tuesday - 24 July 2018
2488. Deputy Jan O'Sullivan asked the Minister for Employment Affairs and Social Protection the estimated cost of the proposed setting-up of the total contributions approach scheme in the social welfare services office in Sligo; the estimated timeframe for the project; the spend for the entire project; the cost under headings (details supplied) in tabular form; and if she will make a statement on the matter. [33369/18]
Amharc ar fhreagra2489. Deputy Jan O'Sullivan asked the Minister for Employment Affairs and Social Protection the number of claims expected to be reviewed in the context of the proposed setting-up of the total contributions approach scheme; the quantum of staff allocated for the scheme by full-time staff and grade; and if she will make a statement on the matter. [33370/18]
Amharc ar fhreagra2490. Deputy Jan O'Sullivan asked the Minister for Employment Affairs and Social Protection the quantum of resources that will be allocated to communicating with customers of her Department, that is, telephone, email and post, in terms of the move to the total contributions approach; the resources that will be allocated to the setting-up of the areas, that is, computer instalment and set-up of user accounts for the operation of the system; and if she will make a statement on the matter. [33371/18]
Amharc ar fhreagra2491. Deputy Jan O'Sullivan asked the Minister for Employment Affairs and Social Protection if consideration has been given and account taken of the additional workloads for service officers in the context of the total contributions approach project; and if she will make a statement on the matter. [33372/18]
Amharc ar fhreagraI propose to take Questions Nos. 2488 to 2491, inclusive, together.
As the Deputy is aware, in January of this year, the Government announced the option for state pension (contributory ) recipients impacted by the 2012 Budget rates to avail of a review of their existing pension entitlement under a new total contributions approach, and where relevant, the option to apply for new HomeCaring credits.
At the time of the announcement, the estimated cost of the increased state pension (contributory) entitlements was estimated to be in the region of €40 million per annum. This cost increases as more pensions become awarded under existing arrangements at post Budget 2012 rates and fall to be reviewed at a future date. As of the end of June 2018, there are over 51,000 claimants who have been impacted by the rate band changes which took effect from September 2012. As pensions are awarded on a weekly basis, the final cost will not be clear for some time. It is dependent on the pension rate increases payable based on the take up of invitations to pensioners to have their entitlements reviewed under the alternative total contribution approach and the number who benefit from the new HomeCaring credits.
Considerable effort is required across a number of separate business areas of my Department to design and implement suitable systems, including ICT, and to prepare the necessary legislative provisions to underpin the increased entitlements, where due. Work on design of the system changes to administer the reviews, re-using where possible existing functionality, has already commenced. Funding of €504,000 has been secured to design and develop these systems in order to cater for the new HomeCaring Credits and the new pension total contributions approach calculation.
My Department has already appointed a full time team of three, based in our Sligo office to spearhead the implementation. It is expected that these staff will, at the appropriate time, need the assistance of around 100 additional staff, compromising primarily temporary clerical officers, in order to prepare the information material; issue the invitations to customers for review; carry out the requested state pension (contributory) re-calculations; examine and decide on HomeCaring credit qualification; assess subsequent pension rate impacts; issue notifications to pensioners of the outcome; and arrange for the rate adjustments and payment of arrears, where due.
The final design of the system and application solutions will determine the overall resource requirement and grade levels. A number of staff will be appointed in the Autumn to conduct some analysis of known insurance records and to help inform system development requirements. Any recruitment is subject to the normal sanction from the Department of Public Expenditure and Reform.
The bulk of the administration work for this project will take place in the Sligo office, with a small team in our Buncrana office. Preparation works are already underway to provide for accommodation, computer and other technical supports necessary.
Once the necessary enabling legislation is in place, my Department will be in a position to immediately get review process underway.
I hope this clarifies the matter for the Deputy.
