Dáil Éireann Debate, Tuesday - 22 January 2019
641. Deputy Robert Troy asked the Minister for Employment Affairs and Social Protection the status of efforts to alter the State pension qualification criteria to ensure that all persons who have had periods outside of the PAYE system or who have been a homemaker for a period of time are entitled to a full State pension. [2815/19]
Amharc ar fhreagraThe Government intends to introduce a Total Contributions Approach (TCA) to establishing the level of entitlement for all new state pension contributory claims from 2020 onwards (TCA2020).
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.
In advance of this, on 23 January last, the Government agreed to allow pensioners, born on or after the 1st September 1946, affected by the 2012 changes in rate bands, to have their state pension (contributory) entitlement calculated under an interim TCA (TCA2012). This also provides for up to 20 years of home caring periods in the calculation of that entitlement, for those who took time out of the workplace for parenting children under age 12, or looking after individuals who needed increased levels of care.
In late September, my Department commenced the examination and categorisation of around 79,000 individual social insurance records of pensioners identified for review. Information letters have issued to these 79,000 pensioners to let them know that their social insurance record is being examined and what will now happen. This number for review will increase weekly, as new non-maximum rate state pension (contributory) claims are awarded, and each of these pensioners will be communicated with by the Department.
Legislation to facilitate this interim TCA and the application of HomeCaring Periods was enacted at the end of 2018. This allows the Department to progress the reviews and that work has now begun. The Department has recruited over 110 temporary staff members to expedite this work. 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. Given the numbers involved, it will take my Department a number of months to work through all the claim reviews. 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.
