Dáil debates

Wednesday, 26 September 2018

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

State Pension (Contributory) Eligibility

10:50 am

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael) | Oireachtas source

On the first point, the issue was raised in a number of submissions. I am a told a Deputy made a similar submission, although I am not sure if it was Deputy O'Dea. I am conscious it is one of the matters that has to be considered before we make the final decision. Forty years is the norm for many pensions and it is the number that will be required under the TCA 2012 model. When the legislation is passed in regard to those affected by the 2012 rate band changes, the Deputy will be aware that as the class S contributions were only introduced in 1988, it will be challenging for many self-employed people to qualify for a full pension by 2020 if the number of contributions at the time exceeds 32. The early analysis from the consultation shows that, for some of those who responded, a more transitional model is preferred, whereby those qualifying in 2020 would have a lower bar than those qualifying in the later years and would have the opportunity to catch up by, say, 2028, given that the latter would have had more access to PRSI contributions than the people who were there beforehand. The Deputy will appreciate that I cannot pre-empt any of the deliberations we will have on the outcome. However, the reason we ask for submissions is to consider them exceptionally carefully.

With regard to the Deputy's other point, the number of paid contributions to qualify for the contributory State pension has increased over the years. The most recent increase to 520 was agreed and passed in legislation by the Deputy's party in government in 1997 and implemented in 2012. This was also raised in a number of submissions, including that made by the Deputy on behalf of his party. Again, it is something that will be considered in the context of the new proposals. Nothing is agreed until everything is agreed.

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