Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

I thank the Deputy for raising this issue. I am aware that the removal of the anomalies in the pensions system is of acute concern. It is also a difficult task. As the Deputy knows, a disregard for home caring was introduced in 1994. Many people who opted out of the workforce in the years before 1994 have been severely affected by averaging. The averaging system is an embedded part of the way we calculate whether people have made sufficient contributions to receive full pensions. It is embedded in the system. The Minister for Employment Affairs and Social Protection is committed to introducing a total contributions approach as a long-term solution. It will overcome the anomaly whereby some people who have made the same number of contributions as others are treated less fairly because their contributions are averaged over a longer period with a gap somewhere in between. Such anomalies will be removed by the long-term solution proposed. As the Deputy said, the Minister is examining various short-term options, on which she will report to the Cabinet in due course. I understand a report on the issue has been put together and will be brought before a Cabinet committee.

When we are making any change in the pensions area, we must ensure it will be sustainable in the long term and not create additional unfairness or new anomalies elsewhere. We also have to ensure it can be funded on a sustainable basis. Such requirements have to be teased out by any responsible Government to ensure the changes made in response to a set of challenges - I recognise that there are challenges in this regard - are sustainable and will not create further unfairness elsewhere. The Government will take time and care to ensure that when we are addressing these problems, we will not create problems further down the road for others. This issue will be carefully assessed by it. We will look at the cost implications and the equity of anything proposed.

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