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

The average pensions paid by my Department to men and women over 66 years of age are within 2% of each other. This is reflected in the consistent poverty figures for people over 65 years of age, which show 2.6% of women and 2.9% of men experience consistent poverty, which, effectively, is parity. In fact, men are slightly more at risk of poverty in old age than women.

The current rate bands applying to the State contributory pension were introduced from September 2012 by the then Minister, Deputy Burton, replacing previous rates introduced in 2000. These more accurately reflect the social insurance contributions history of a person. Alternative payments are available for those with little or no means. It is estimated that to revert to the previous bands would cost at least €60 million in 2018, €70 million in 2019, €80 million in 2020, €90 million in 2021 and so forth - an increase of €10 million each year. The main beneficiaries from such a decision would be better-off pensioners who do not qualify for means-tested pension payments and who did not make sufficient contributions to the Social Insurance Fund during their working years to qualify for a full-rate contributory pension, so such a change would increase inequality. I am informed that 57.8% of those affected by the changes in 2012 are women. However, 54.4% of people over 66 years of age are women, so the gap in this regard between men and women is only 3.4%.

The contributory State pension is an entitlement built up through PRSI contributions, and is not impacted on by the means of the pensioner.

The principle of the contributory State pension is that people will receive a fair return for the contributions they have made to the Social Insurance Fund by paying PRSI during their working life. Generally speaking, those with a stronger attachment to the workforce, who have paid more into the Social Insurance Fund over a sustained period, are paid a higher pension than those with fewer or more intermittent contributions during their working life.

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