Dáil Éireann Debate, Tuesday - 14 July 2020
713. Deputy Seán Crowe asked the Minister for Employment Affairs and Social Protection the provisions in place to ensure that those who have lost out due to the change in pension rate bands in 2012 will be given funds owed to them. [14923/20]
Amharc ar fhreagraThe then Government introduced a new initiative in 2018 called the Interim Total Contributions Approach (Interim TCA) in response to concerns raised about rate-band changes in 2012.
This initiative included provision for a new HomeCaring Periods Scheme which fundamentally changed the entitlement of many who spent time out of the workforce caring for others. It, for the first time, acknowledged home caring periods prior to 1994 and provides for up to 20 years of HomeCaring periods to be considered. As a result, those who have a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of credits / HomeCaring periods, qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. Arising from this initiative, the Department reviewed over 94,000 cases resulting in over 38,000 receiving an increased pension payment. Since April 2019 all new State Pension (Contributory) applications are assessed under all possible rate calculation methods, including the Interim TCA, with the most beneficial rate paid to the pensioner.
It should be noted if a person does not satisfy those conditions, they may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is over 95% that of the maximum rate of the State Pension (Contributory). 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.
The new Programme for Government “Our Shared Future” includes a commitment to introduce a Total Contributions Approach (TCA). This is intended to be a fairer and more transparent system where the person's lifetime contribution will be more closely reflected in the benefit received. Furthermore, the Programme commits to the establishment of a new Commission on Pensions to examine sustainability and eligibility issues in relation to State pensions and the Social Insurance Fund. The Commission is to report to Government by June 2021 on a range of matters including total contributions and eligibility requirements.
I hope this clarifies the matter for the Deputy.
