Alice-Mary Higgins (Independent) | Oireachtas source

I move amendment No 31:

In page 14, after line 7, to insert the following:

"10.The Minister shall, within three months of the passing of this Act, prepare and lay before the Houses of the Oireachtas a report on the total contributions approach to the contributory state pension, which shall include— (a) an estimation of the potential cost of the scheme on the basis of 1,560 contributions rather than 2,080 contributions as the threshold for qualification for the maximum rate, and

(b) a comparison of the likely difference between a 1,560 contributory requirement and a 2,080 contributory requirement in terms of weekly income levels for those affected.".

This amendment relates to the total contributions approach, in respect of which I understand the Minister has indicated a timeline around when we can expect it to be introduced and, specifically, the number of contributions that might be required, which is of huge concern to many people. There is a sizeable difference between moving to a 30-year requirement and a 40-year requirement. As the Minister will be aware, many people can currently access the contributory State pension with 20 years' contributions. The move towards a 30-year contributions requirement has been well signalled and has taken place over a number of years. However, there was rhetoric from officials within the Department to the effect that the case for a 40-year threshold of contributions is being examined. Very few people who would be likely to come of age within the current total contributions approach roll-out will be able to fulfil the 40-year contributions requirement. This is a matter of very serious concern. We know of the severe impact on women, predominantly, who are on reduced rate pensions, this being the cohort affected in 2012. I do not want to see a situation where a much larger cohort of the population find themselves on reduced rate State contributory pensions because they do not have 40 years of contributions.

The second issue is what form of contributions are to be accepted within that 30-year threshold. The introduction of care credits is a matter on which I have praised the Minister in the past, as I had on many occasions advocated for their introduction. It is important that following on from the introduction of care credits, we do not allow people to use them and then push the goalposts out such that they effectively become meaningless in terms of the level of pensions they are paid or the security they have. The amendment seeks an update on this matter by way of report, but the Minister might, perhaps, be able to indicate the timeline that she or the Department is considering in terms of bringing proposals to the table in regard to the total contributions approach, which may obviate the necessity for a separate process.