Alice-Mary Higgins (Independent) | Oireachtas source

It is very positive that people can make voluntary contributions to the contributory pension but it is currently quite difficult to do so. I have often pushed for it to be made easier to make voluntary contributions to the contributory pension. Those on particularly low incomes may be concerned that the scheme may affect their eligibility for the non-contributory pension. I recognise the role of the €20,000 threshold in that regard.

I acknowledge that the community and voluntary sector is engaging with the Department. However, the State often has contracts with the community and voluntary sector and private employers. There may be implications in regard to State procurement, for example. Although private companies may be able write off corporation tax to compensate for increased pension contributions, that is not an option for the community and voluntary sector because such tax does not apply to it. There may need to be consideration of a compensatory measure in that regard, particularly in regard to long-term eight or ten-year contracts which may be taken out by the State with a community organisation. The corporation tax write-off will be available to some employers but not others, so a supplementary measure may be required.

On the related matter of the contributory pension, the numbers of contributions was discussed. The very strong feedback from most representative organisations is that the requirement to have made contributions for 40 years in order to be eligible for the full contributory pension is excessive and we should retain the 30-year requirement detailed in the original pension plan. That issue was raised by the large representative organisations during the recent consultation. I am interested in how these matters intersect.