Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

State Pensions

Dáil Éireann Debate, Tuesday - 28 September 2021

Tuesday, 28 September 2021

Ceisteanna (491)

Claire Kerrane

Ceist:

491. Deputy Claire Kerrane asked the Minister for Social Protection if consideration has been given to extending the total contributions approach for calculating the State pension (contributory) to those who have not accumulated 520 PRSI contributions (details supplied); and if she will make a statement on the matter. [45942/21]

Amharc ar fhreagra

Freagraí scríofa

In April 2012, the number of paid contributions required to qualify for a State Pension (Contributory) increased from 260 to 520. While this change only took effect in 2012, it had been signalled well in advance. In 1993, "Developing the National Pension System - Final Report of the National Pensions Board” was published, which recommended that the number of paid contributions required to qualify for a contributory pension should be increased to 520 contributions, in recognition of the expansion of PRSI coverage over the decades. The necessary legislation to effect this recommendation was contained in Section 12 of the Social Welfare Act 1997, which provided for the implementation of the change in two stages, with the paid contribution requirement being standardised at 260 from 2002 (5 years after its introduction into law), and rising to 520 from April 2012 (15 years after its introduction in law).

The Pensions Commission was established in November 2020 to examine sustainability and eligibility issues with the State Pension and the Social Insurance Fund, in fulfilment of a Programme for Government commitment. Its terms of reference included consideration of how long-term carers could be accommodated in the pension system.

The Commission has now concluded its work and has submitted its final report to me. The report itself is extremely detailed, running to several hundred pages, and covers a range of complex matters in relation to the Pensions system which will require very careful consideration.

It should be noted that if a person does not satisfy the conditionality to qualify for State Pension (Contributory), s/he 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 his/her spouse is a State pensioner and has significant household means, his/her most beneficial payment may be an Increase for a Qualified Adult, based on his/her personal means, and amounting to up to 90% of a full contributory pension.

I hope this clarifies the matter for the Deputy.

Barr
Roinn