Fiona O'Loughlin (Kildare South, Fianna Fail) | Oireachtas source

I am pleased to note work is under way to replace the yearly average system and I hope the new system will be more equitable. The Minister's statement that those who pay more into the pension fund are more likely to receive pay-outs under the scheme is not necessarily correct. Under the averaging system for pensions, specifically the measure introduced by the Minister's predecessor, Deputy Joan Burton, a person who enters the social insurance system just before his or her 56th birthday and pays stamps for ten years will be entitled to a full pension, whereas many of those who pay stamp contributions amounting to 20 years, albeit over a longer period, will be entitled to less than a full pension. It is patently unfair that a higher pension will be available to a person who has made fewer contributions than others.

Women who have spent a large portion of their lives providing a socially vital service are being doubly penalised. Not only do they not have recourse to a private pension entitlement for the period in question, but they are also being denied a full State pension. The homemaker's scheme introduced by the Fianna Fáil Party in 1994 must be reviewed and a feasibility study done on extending eligibility to years spent caring for children before 1994. The Government must also consider the possibility of amending the calculation method used in respect of the contributory pension. Consideration should be given to disregarding past payments, thereby altering the date on which an individual is considered to have entered the workforce.

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