Oireachtas Joint and Select Committees

Wednesday, 21 January 2015

Joint Oireachtas Committee on Education and Social Protection

Impact of Social Protection Payments on Income Distribution: Discussion

1:00 pm

Photo of Marie MoloneyMarie Moloney (Labour) | Oireachtas source

I would like views on an issue I have raised previously but it seems to go under the radar. If a person works in Ireland for ten years and leaves the country and works for 40 years in another country, at pension age that person will receive a pension from Ireland based on what he or she paid in Ireland plus what he or she paid in another country, because we have bilateral agreements with America, England and other countries. I feel a pension should be based on the contributions the person paid in this country of, say, €95 or whatever per week. We take into account all the contributions the person has paid for 40 years in another country and he or she receives a pro ratapension which is at a much higher rate while not having contributed here for more than 40 years, except for the ten odd years. I am convinced we should be looking at a pension based on what they paid in this country. They will also get a pension in the other country based on what they paid in that country and on other Irish contributions as well. Therefore, they are benefitting on the double from contributions. In recent years many non-nationals who worked in Ireland have returned to their own country because of the crash in the economy. Going forward we will be paying a pension to these people despite the fact that they have contributed only for, say, a minimum number of years here. I would like to hear the views of the representatives on that issue.

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