Dáil debates

Thursday, 4 April 2019

Ceisteanna - Questions - Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

State Pension (Contributory)

10:30 am

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

From the Minister's reply, I take it there is no guarantee that it will come into effect in 2020. As a result of the consultation, the necessity for legislation, Cabinet agreement etc., it may not kick in until later than 2020.

I want to ask the Minister about one or two technical aspects of the proposal. I know it is in the course of preparation and the Minister mentioned a consultation process with 300 submissions, etc. I am sure the Minister got a submission the rest of us received relating to the existing hurdle for someone to qualify. Regardless of their record, they must have at least 520 paid contributions. That is the position under the temporary arrangement the Government has introduced, which we supported, to accommodate people who became pensioners since 2012. The rules for the new system may not necessarily be the same as the rules that apply at the moment.

As the Minister will be aware, the initial hurdle was 260 paid contributions, which equates to five years' full paid stamps. When people have paid contributions for five years they usually have other credits, etc. The required number of paid contributions is a terrible cliff edge. There are very many people in the country who have paid between 260 and 500 contributions. I realise that there would be a big cost factor if the Minister were to reduce it in one go to 260, but surely some recognition can be given to people who have paid at least 260 contributions even if it meant being less generous in the allocation of credits, etc.

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