Dáil Éireann Debate, Tuesday - 17 October 2023
361. Deputy Robert Troy asked the Minister for Social Protection if she will examine the reason a person in receipt of a partial contributory pension does not receive a full increase and only receives a pro rata increase; if she agrees that this leaves partial pension holders at a disadvantage in terms of cost-of-living increases. [44936/23]
Amharc ar fhreagraAs announced in Budget 2024, the maximum rate for the State Pension (contributory) is set to rise by €12 to the new rate of €277.30 per week in January 2024. This was part of a range of targeted measures included in the budget to help older people with the cost of living. These include a Christmas bonus payment, a further bonus payment in January, a €200 lump sum payment for those in receipt of the Living Alone Increase and a €300 lump sum payment for those in receipt of the Fuel Allowance.
The State Pension (contributory) is a contributory pension based on the social insurance record of each recipient. Those who have 40 years worth of contributions, paid or credited, or have an average of 48 contributions for each year since they entered the social insurance system, receive the maximum rate payment. Those who do not qualify for the maximum rate payment receive a payment more closely aligned to their contributions.
When the maximum rate is increased, those below the maximum rate receive the same proportionate increase. If pension recipients in receipt of a pension below maximum rate were to receive an increase of €12 per week, they would receive a greater proportionate increase than those at the maximum rate, who have contributed more to the social insurance fund from which the pension is paid.
The State Pension (non-contributory) is available for all residents over 66 years and may be paid at a rate equivalent to 95% of the State Pension (contributory). While the payment is means tested, significant disregards are available.
I hope this clarifies the matter for the Deputy.
