Dáil Éireann Debate, Wednesday - 19 December 2018
564. Deputy Martin Heydon asked the Minister for Employment Affairs and Social Protection the options available to those on reduced contributory pensions pre-2012 that spent time caring for families; and if she will make a statement on the matter. [53847/18]
Amharc ar fhreagraA policy to introduce the Total Contributions Approach (TCA) to pensions calculation was adopted by Government in the National Pensions Framework in 2010, as was the decision to base the entitlements of all new pensioners on this approach from around 2020.
In advance of this, on the 23rd January this year, the Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated by an interim “Total Contributions Approach” (TCA) which will include up to 20 years of new HomeCaring Periods.
People whose pensions were decided under the 2000-2012 ratebands were subject to a significantly more generous regime than those who qualified before or afterwards, as a Yearly Average of only 20 contributions per year (out of a maximum of 52) could attract a 98% pension, compared to 85% for post-2012 pensioners.
For those with insufficient contributions to meet the requirements for a State pension (contributory), whether they reached State pension age before or after 2012, they may qualify for a means tested State pension (non-contributory), the maximum personal rate for which is €232 (over 95% of the maximum rate of the contributory pension). Approximately 70% of such pensioners are paid at this rate> It is important to note that this payment does not include other payments such as rent allowance, household benefits or fuel allowance that may also accrue.
Alternatively, if their spouse is a State pensioner and they have significant household means, their most beneficial payment may be an Increase for a Qualified Adult, based on their personal means, and amounting up to 90% of a full contributory pension.
I hope this clarifies the matter for the Deputy.
