Dáil Éireann Debate, Tuesday - 17 May 2022
520. Deputy Pa Daly asked the Minister for Social Protection if it is possible to remove blank years from a person's contributions history if residing and working in another State, given the impact of this on the total contributions average; and if she will make a statement on the matter. [24864/22]
Amharc ar fhreagraUnder European Union regulations, the insurance records of other Member States can be combined to satisfy the 520-contribution condition and give entitlement to a proportional or pro rata pension.
The rate of entitlement is based on the proportion of Irish full-rate social insurance contributions to the person’s total combined Irish and EU social insurance contributions. The greater the number of Irish contributions paid by a person, the higher their weekly rate of EU pro rata State pension entitlement. Conversely, a greater amount of full-rate EU contributions would yield a lower rate of pro rata pension.
In January 2018, the Government announced an Interim Total Contributions Approach (Interim TCA) to calculate the entitlement of pensioners who reached State Pension Age on or after 1 September 2012 (i.e. those born on or after 1 September 1946) and who had a reduced rate pension entitlement based on post Budget 2012 rate bands.
From April 2019, all new State Pension (Contributory) applications are assessed under all possible rate calculation methods, including both the Interim TCA and the Yearly Average approach, with the most beneficial rate paid to the pensioner.
Social security provisions have existed in EU law for more than 30 years, and are contained in Regulations (EC) No 883/2004 and 987/2009. As such, Ireland and other EU Member States are bound to abide by these regulations as they are applied to pension payments. Social insurance contributions made in other EU countries may be used to determine eligibility for contributory pensions, but cannot be used to increase the rate of payment. Any changes to this system would have a significant impact on the Social Insurance Fund and consequently the Exchequer.
I hope this clarifies the matter for the Deputy.
