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

I propose to take Questions Nos. 52 and 78 together by agreement. The introduction of the total contributions approach, TCA, for establishing the level of entitlement for all new State pension contributory claims was signalled by the then Government in the national pensions framework in 2010.

At the time it set a target date of 2020 for implementation of the new TCA approach. More recently, the roadmap for pension reform for the period 2018 to 2023, inclusive, which was launched on a very snowy day last year targeted implementation of the TCA approach from quarter three of 2020. This is subject to the necessary legislation being enacted and supporting structures and the IT system being in place.

Consultation is a very important part of the development and design of the new pension for the next generation. With this in mind, I launched a public consultation process on the design of the TCA on 28 May 2018, in which a wide variety of stakeholder groups were invited to participate. A number of workshops were also held on the day to elicit views and feedback. Shortly afterwards Members of the Oireachtas were invited to a very detailed briefing by my officials in Leinster House. The consultation process was open for over three months and the Department received almost 300 responses from individuals and organisations. The submissions outlined the views of respondents on the issues of most interest to them. Having carefully examined the outputs of the consultation process, my Department is designing the scheme and I intend to bring a proposal to the Government setting out the design in the near future. When the Government has agreed to the approach to be taken, I will initiate the work required to introduce this reform.

With reference to the State pension age, the purpose of reform in this area is to make the pension system more sustainable in the context of increasing life expectancy. If there is no change in State pension age, the proportion of a person's life spent in retirement will increase to levels where current workers will no longer be able to support current pensioners. The Social Welfare and Pensions Act 2011 provided that State pension would age be increased gradually to 68 years. The process began in January 2014 with the abolition of the State transition pension. This measure standardised State pension age for all at 66 years. It will increase to 67 years on 1 January 2021 and 68 in 2028.

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