Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

It is reassuring that the final determination has not yet been made on whether the baseline will be 30 or 40 years. In view of the fact that the self-employed only started making pension contributions in 1988, no self-employed person will qualify for the full pension in the year in which the new system kicks in. Does the Minister accept that such a scenario would be unfair?

The Minister acknowledged that some people may lose out under the new scheme. Let us assume a baseline of 40 years is adopted. Under the current system, a person with 20 years of contributions could receive up to 85% of a contributory pension, whereas under a total contributions system with a baseline of 40 years, that person would only receive 50% of a contributory pension. The Minister stated such a person would have an option to remain in the current system if he or she was adversely affected and worse off under the new system. Would such an arrangement be transitional and, if so, for how long would it last?

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