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Pension Provisions

Dáil Éireann Debate, Tuesday - 22 January 2019

Tuesday, 22 January 2019

Ceisteanna (633)

Charlie McConalogue

Ceist:

633. Deputy Charlie McConalogue asked the Minister for Employment Affairs and Social Protection the position in relation to the proposed changes of the pension system in 2020; and if she will make a statement on the matter. [2602/19]

Amharc ar fhreagra

Freagraí scríofa

A 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 2020.

I launched a public consultation on the design of the full TCA to be introduced from 2020 on the 28th of May to which a wide variety of stakeholder groups were invited. A number of workshops were also held on the day to elicit views and feedback. All Oireachtas members were invited to a detailed briefing in Leinster House by my officials shortly afterwards. The consultation was open for over 3 months and the Department received almost 300 responses from individuals and organisations including open written submissions. Those submissions outlined the views of respondents on a number of issues, including the number of years required for a full pension, as intended as part of the consultation process.

Analysis of the views submitted is being finalised, and I understand will be submitted to me very shortly. When I have considered this analysis, I will bring a proposal to Government.

It should be noted that the pension is still intended to be a contributory pension, as exists in most developed countries, and that those who have contributed to the Social Insurance Fund would still build up pension rights through PRSI paid over the years.

The scheme will be introduced by legislation, and the proposals will, I believe, be broadly debated by members of the Oireachtas.

In advance of this, on 23 January  2018, the Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated using an interim “Total Contributions Approach” (TCA) which will include up to 20 years of new HomeCaring periods. This approach is expected to significantly benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. Following enactment of the necessary legislation at the end of 2018, reviews of c. 80,000 pensioners impacted has commenced, and given the numbers involved will take a number of months to complete. As the reviews are processed, the pensioners involved will be notified of the outcome of their review, or asked to provide further information to allow the review to be concluded. Where the review results in a rate increase, their weekly payment will be adjusted and arrears paid - backdated to 30 March 2018, or the pensioner's 66th birthday if later. Where an increase is not awarded, their personal rate of pension will remain unchanged. Work on the reviews will continue until all identified pensioners have been notified of their review outcome.

I hope this clarifies the matter for the Deputy.

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