Dáil debates

Wednesday, 26 September 2018

Ceisteanna Eile - Other Questions

State Pension (Contributory)

11:20 am

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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62. To ask the Minister for Employment Affairs and Social Protection the timeline for payment of revised pensions to those in receipt of contributory pensions post-2012, following reviews to be carried out in 2018; and if she will make a statement on the matter. [38866/18]

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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63. To ask the Minister for Employment Affairs and Social Protection when she expects the reviews to commence for those in receipt of contributory pensions post 2012 who are on reduced pensions due to years spent caring for family; and if she will make a statement on the matter. [38865/18]

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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73. To ask the Minister for Employment Affairs and Social Protection if she will report on the proposed legislation to be brought forward to correct the anomalies in relation to contributory pensions post 2012; and if she will make a statement on the matter. [38863/18]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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80. To ask the Minister for Employment Affairs and Social Protection when she expects to be in a position to address the issue of pensions for women who leave employment to rear their families and subsequently find themselves without a pension or who may have sufficient contributions but when the current criteria is applied throughout their working life, they have no entitlement to a State pension (contributory); when she expects the new regime to emerge to address these issues; and if she will make a statement on the matter. [38849/18]

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Fine Gael)
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90. To ask the Minister for Employment Affairs and Social Protection the progress made on the commitment to address the anomaly caused by rate band changes in 2012; if the solution of a total contributions approach and home caring credits is on target; and if she will make a statement on the matter. [38820/18]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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91. To ask the Minister for Employment Affairs and Social Protection the status of her plans to re-examine the situation for women who lost out on a full State pension (contributory) due to leaving the workforce to rear their children; and if she will make a statement on the matter. [38660/18]

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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93. To ask the Minister for Employment Affairs and Social Protection when legislation will be brought forward to enact new proposals on the State contributory pension scheme; when claimants will have their current contributory pensions reviewed; and if she will make a statement on the matter. [38852/18]

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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The Minister relieved the concerns of many pensioners and families last January when she announced changes for those in receipt of reduced contributory pensions post-2012 due to some anomalies in the yearly averaging system. On behalf of those due to be reviewed, I ask for confirmation that the process as outlined last January is continuing and that the reviews will be completed later this year, with adjusted payments beginning early next year.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 62 and 63, 73, 80, 90 and 91 and 93 together.

I thank Deputy Heydon and all of the other Deputies who submitted questions on this matter. On 23 January last the Government agreed to my proposal that would allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated on a total contributions basis, including a provision for up to 20 years of a new home caring credit. Legislation will have to be enacted to enable the implementation of these arrangements and a number of options regarding the best approach to passing that legislation are being considered. In addition, a new information technology system must be developed in line with the legislation. My Department is currently working on both of these projects and both are at a very advanced stage. We must then design the procedures with which we will work. We are currently recruiting some temporary staff who will conduct the reviews. Once recruitment is completed, we will start carrying out the reviews.

My Department will write to the 67,000 impacted customers in the next number of weeks to explain to them what is happening and how the review process will work. As I have stated previously, it is still planned to commence these reviews before the end of this year, with the first payments being made in the first quarter of 2019, backdated, where relevant, to the end of March 2018, or later where a person attained his or her 66th birthday after that date. I wish to reassure people that it is not necessary for them to contact the Department on this matter. Once the legislation is enacted and the systems and processes are ready, my Department will write again to the people impacted and provide them with the opportunity to have their pension recalculated. Once they are presented with the recalculation, they will then have the option of continuing on their old pension payment or moving to a new pension payment. I have been asked on a number of occasions if there will be winners and losers in this recalculation process, as has happened on different occasions in the past but I can absolutely assure Deputies and those listening that there will be no losers. Those whose pension entitlements are recalculated and are found to be smaller than their current payment will obviously choose to stay on the current payment. That said, the anticipated outcome of the process is that the majority of the 67,000 people who were adversely affected will be positively impacted by the recalculation and will be moved to a new, higher payment.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I will now invite Deputies to respond in the order in which their questions were submitted. All Deputies have one minute and Deputy Heydon is first.

11:30 am

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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I thank the Minister for her response. I am glad to hear her reiterate that the details of the plan which were originally announced in January are on track. Some of those affected by this issue have begun to think that it may not happen because there has not been much recent media coverage of the matter. After many years of campaigning, they are almost afraid to believe that the issue will finally be resolved. Great credit is due to the Minister not alone for the announcement last January, but also for the work since then by her and her officials in order to be in a position to undertake what will be a very significant review. I welcome her statement that the letters will issue in the coming weeks.

The Minister is aware that the issue has caused upset, frustration and hardship for many of those affected by the changes in 2012. The payment of a reduced weekly pension reinforced their feeling that their work caring for family members over the years was unrecognised. Addressing those feelings is a very important step.

Can the Minister confirm that an allocation will be set aside as part of the budget to make the necessary repayments next year? She mentioned that 67,000 people have been affected. Is that the total number of people in receipt of contributory pensions post-2012? Will people who are not covered by the review receive letters about it? Will all 67,000 letters issue at once or will it take a couple of weeks for that to be done? It is a large number of letters but it may cause confusion if some people receive a letter and others do not. How quickly does the Minister expect the letters to be issued?

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I ask Members to keep to their allocated time.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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There was great satisfaction when the announcement regarding the correction of the 2012 anomaly was made earlier this year. People are very keen to see progress in that regard. It was understood that legislation would be advanced in the earlier part of this year with a view to the letters issuing approximately now and through the autumn and payments issuing at the beginning of next year. Has such legislation been advanced? I understand that it has not. People believe that the timeline is not being adhered to. Are things still on schedule? When will the letters issue? Will it be this side of Christmas or thereafter? People need reassurance. Those affected by the 2012 cuts are very conscious of time and hope that this will be addressed as quickly as possible. The Minister indicated that temporary staff will be recruited. How many will be taken on and when will they be in a position to carry out the reviews?

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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I appreciate the comprehensive nature of the Minister's reply. Given the number of people who will qualify for two levels of pension and are likely to opt for the higher of two, I ask for an indication of the extent to which provision is likely to be made to ensure that the system will work in the way it is intended for the benefit of all. Are those who have made contributions in this jurisdiction and other jurisdictions likely to be affected?

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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The Minister was very co-operative in her first reply in terms of time. On the basis that each Deputy has a further contribution to make, I ask her to keep this reply similarly brief.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I will be brief. I am very pleased to reiterate that there is no delay on this issue, nor any change of mind or tactic. We are in the position envisaged at the time of my announcement in this Chamber several months ago. The Cabinet decided to address the anomaly and legislation in that regard is well advanced. The only thing that must be decided is whether it will be addressed in the social welfare Bill or in stand-alone legislation. I make that point not to confuse or conflate the issue but, rather, in view of the particular timelines of this House.

I appreciate the comments made by Deputy Heydon. I was lucky to be the Minister for Employment Affairs and Social Protection at a time when a large number of pensioners had mobilised over an unfair, unjust and discriminatory issue by which they had been affected since 2012. I pay particular tribute to the pensioners who persistently attended weekly clinics and to Age Action Ireland for its co-ordination of that campaign. I am happy to say that this is one of several instances when people have shouted loudly and the Government has heard them and is able to allocate money to the matter in the budget.

A total of 67,000 people have been impacted. To answer the question of Deputy Durkan, not all of them are in Ireland, with some 9,000 living outside the State. All those affected will be contacted in the coming weeks, well in advance of Christmas. I hope and assume that the assessments will be completed by then.

The temporary staff will all be in place by the end of next week and will then begin training. Thereafter, the letters will issue and the assessments will commence. By the end of the first quarter of next year each of those 67,000 people who choose to move to a new increased payment will have received their backlog in the form of a little lump sum and will be on the new payment.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I ask Deputies to be as brief as possible.

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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I thank the Minister for her reply. She is correct in her remarks on pensioners. Those with whom I dealt in Kildare on this matter were very persistent, and rightly so. This was one of the few issues on which there was no counterargument to those who raised the matter at clinics. There was an inherent unfairness in the measures and that cut people to the bone because they felt their contribution to the State, the role they played and the choices they made throughout their lives were being questioned. I welcome that this is being addressed. I welcome the confirmation that the 67,000 letters will be issued as closely together as possible because, notwithstanding the size of the undertaking, it will cause consternation if some people receive letters but others do not for three or four weeks thereafter.

I ask that consideration be given to one of the bugbears for those affected, namely, that announced increases in the pension - of €5, for example - do not apply to their pensions in full because they are on a reduced amount. If there is to be an increase in the pension announced in the forthcoming budget, I ask that the full amount be given to all those in receipt of a State pension because that anomaly has driven home the inequality of the system to date.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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The Minister has provided a significant amount of very useful information on the matter. I am pleased to note the outline of the timeframe for dealing with it because those affected by the 2012 changes wish for matters to be advanced as quickly as possible. The Minister indicated that she has not decided whether this will be provided for as part of the social welfare Bill or in stand-alone legislation. Will that decision impact on the timeline for implementation? When will she know when such legislation will be advanced?

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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We should acknowledge that this change is very welcome and of huge benefit to many people who made contributions and worked extremely hard for the State or caring for others throughout their career and got no recognition for that. Will those persons who made contributions in Ireland and overseas receive the same treatment as everybody else such that there would be no balancing of the situation whereby they might have a higher level from the United Kingdom? Will it be adjudged on the basis of achieving a pension of a particular amount in this jurisdiction?

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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The Minister is in everyone's good books.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I wish to temper expectations somewhat. The 67,000 letters will not issue on one day because we have not taken on 15,000 temporary staff to facilitate such a feat. Rather, they will issue over several weeks. I ask Deputies for their assistance in terms of assuring their constituents who have received a letter when others have not that the letters will be issued to all. Assessing and addressing this anomaly had to be provided for out of the staffing fund for this year. Through certain savings, we have managed to secure funds for temporary staff but not a huge number thereof. There is a sufficient number to enable the Department to carry out the reviews, issue the letters and stick to the timeline set out, namely, that each of the 67,000 people affected will receive their little backlog and move onto their new payments before the end of the first quarter of next year. Nothing has changed. Timelines have not slipped. The decision on whether the legislation is included as an amendment in the social welfare Bill or progressed as a stand-alone Bill will not impact on the timelines. It might be easier to progress as a stand-alone Bill and we are considering that but the decision will not impact on the dates for the payments. However, aspects of this will be done on a phased basis because a significant number of people are affected and the staff of the Department, although great, are not wonder women and men.

Given the common travel area agreements and the reciprocal arrangements between Ireland and the United Kingdom in particular, the arrangements will be identical for those living outside or inside the State. We want to give people the fullest possible payment based on the contributions they made in Ireland or any state with which we have reciprocal arrangements.

11:40 am

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I wish to comment on how we do business.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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Could I clarify something?

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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No, the Deputy cannot come in again.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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I am seeking clarification from the Minister on the number of staff.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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Only two minutes are allowed.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I do not know how many we have taken on.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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Is that all right?

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I genuinely do not know. I think it is enough.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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There was a reference to 15,000 and I thought that could not be possible.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I was being facetious.

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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The Minister said she did not have the money for that.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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The whole Department is working.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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Is Deputy Moynihan happy with that?

Photo of Margaret Murphy O'MahonyMargaret Murphy O'Mahony (Cork South West, Fianna Fail)
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The Deputy would have heard about that on the news anyway before now.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I thank the three Deputies and the Minister for their co-operation. It shows how we can do business when everybody works together. I very much appreciate that.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I thank the Chairman.