Oireachtas Joint and Select Committees

Thursday, 18 May 2017

Select Committee on Social Protection

Estimates for Public Services 2017
Vote 37 - Social Protection (Revised)

10:40 am

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I do not. Averaging would form the bulk of it, though. I apologise - the figures I have given the Deputy concern a reversal of the change made to the averaging system. I do not have the figures for the change made to the number of contributions required. However, the Deputy knows where we are going on this. I am not satisfied with the way we contribute to the State contributory pension. I do not think it is the right way to do it. What I - or certainly the Department - will have for the committee in the next few months, when we have done the actuarial review of the Social Insurance Fund, is a set of ten options as to how we can have a new, fairer system to contribute to the State contributory pension and how much it would cost. Obviously, any time one changes the rules as to how one calculates something, there are winners and losers. Before we make that decision, we need to know who would lose and who would win or who would benefit and who would end up with less. We also need to know, if we were to make sure nobody lost out, which I am sure would be the desire of all of us, what the cost would be. It is pretty phenomenal, by the way. It is important the committee sees those ten options. Then it can decide in its pre-budget submissions whether it would prioritise them over other measures.

Regarding the target time for non-contributory pensions, 73% are done within ten weeks, which is the target. The average is 11 weeks. I am informed that the processing times at the end of April - that is, so far for this year - are well ahead of target for the contributory schemes. We are doing much better on processing except for maternity, unfortunately.

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