Willie O'Dea (Limerick City, Fianna Fail)
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1. To ask the Minister for Employment Affairs and Social Protection if the total contributions approach to calculating entitlement to the contributory pension will come into effect in 2020; and if she will make a statement on the matter. [15534/19]

Willie O'Dea (Limerick City, Fianna Fail)
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This relates to the Government's announcement of a new system for calculating people's entitlement to contributory old age pension, namely, the total contributions approach. The Government gave the impression that this system would be in place from 2020. Is that still the position? If that is the Government's intention, when will we see the legislation providing for it?

Regina Doherty (Meath East, Fine Gael)
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The introduction of a total contributions approach, TCA, to 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 that time it set a target date of 2020 for the implementation of TCA. More recently, the Roadmap for Pensions Reform 2018-2023 targeted implementation of TCA from the third quarter of 2020. This is subject to the necessary legislation being enacted and supporting structures being in place.

Consultation is a very important part of the development and design of any new pension system. With this in mind, I launched a public consultation on the design of TCA on 28 May 2018 to which a wide variety of stakeholder groups were invited to make submissions. A number of workshops were also held on the day to elicit views and feedback.

Shortly afterwards all Oireachtas Members were invited to a detailed briefing by my officials in Leinster House. The consultation was open for more than three months and the Department received almost 300 responses from individuals and organisations. Those 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 now designing the scheme and I intend to bring a proposal to Cabinet shortly setting out that design. Once the Government has agreed the approach to be taken, I will initiate the work required to introduce this reform. At that stage the heads of the Bill will obviously go to the Oireachtas Joint Committee on Employment Affairs and Social Protection for pre-legislative scrutiny. As soon as the legislation is drafted it will be brought to the House and I intend to do it later this year.

Willie O'Dea (Limerick City, Fianna Fail)
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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.

Regina Doherty (Meath East, Fine Gael)
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I cannot say what the Deputy has asked me to say because it is not true. Although there are no guarantees in life and obviously anything could happen between now and 2020, the Government's ambition is to start up contributions in 2020 and that has not changed. We cannot rule out something happening next month or next year, but that is the ambition and that is the roadmap we are working towards.

Many submissions were made for a variety of options to be included and we are looking at all of them. I hope what we will provide to Cabinet to rubber-stamp, hopefully, will be all encompassing. I do not want to discount anybody's contribution during their lifetime of work. I do not just mean work outside the home; I also mean to give people a lift or a step-up to include all the work they do inside the home. Although I am not in a position to tell the Deputy what the final outcome will look like, my aim is to ensure the system will work for generations to come, will be fair and equitable and will take into account everybody's contribution to society, both inside and outside the home.

Willie O'Dea (Limerick City, Fianna Fail)
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I appreciate the Government's ambition for 2020 but I am getting constant queries, as, I am sure, are other Members, from constituents as to when the new system will be put in place. I cannot tell them definitively, on the basis of the Minister's reply, that it will be next year, but that is the Government's ambition. Did the Department receive submissions in the consultation process regarding the baseline figure of 40 years, which is 2,080 contributions? It was originally envisaged that it would be 30 years rather than 40.

Regina Doherty (Meath East, Fine Gael)
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I would be very comfortable if the Deputy said to his constituents what I say to mine, namely, that our intention is to introduce it in quarter 3 of 2020. That intention and the roadmap for pensions have not changed since we drew up that roadmap in 2018. There were many submissions on the topic referred to by the Deputy. However, things have changed over the years. The original formation looked at a 30-year span but only ten years' credits. We all recognise that people, particularly women, who stay at home to mind their children do so for a hell of a lot longer than ten years. They should not be discounted. There is no final outcome yet. I have to finalise the position in the next couple of weeks. I want to ensure that everyone's contribution inside and outside the home is recognised equally.