Written answers

Thursday, 29 September 2011

Department of Social Protection

Pension Provisions

5:00 pm

Photo of Peter MathewsPeter Mathews (Dublin South, Fine Gael)
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Question 105: To ask the Minister for Social Protection if social welfare assistance will be made available for a retired person (details supplied); and if she will make a statement on the matter. [26709/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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State pension (transition) (SPT) is currently paid to people aged 65 who have a minimum yearly average of 24 social insurance contributions and who have retired from work. Currently it ceases at age 66 when the claimant transfers to State pension (contributory) (SPC).

As a result of legislation introduced this year, State pension age will be increased gradually to 68 years. This will begin in 2014 with the abolition of SPT and the standardisation of State pension age at 66. State pension age will be increased to 67 years in 2021 and to 68 in 2028. It is worth noting that, until the early 1970s, the qualifying age for State pension (contributory) was 70 years of age. By gradually increasing the qualifying age for State pension, people will be further encouraged to remain in employment beyond 65 years of age.

The Quarterly National Household Survey Q4 2010 showed that the numbers currently at work drop dramatically at 65 years of age. While 77.2 per cent of people aged 45-54 years are in employment, this drops to 64.3 per cent for 55-64 year-olds and to just 8.7 per cent for people aged 65 years or older. It is clear, therefore, that the challenges facing the Irish pension system are significant. Increases in life expectancy mean that more people are living to pension age and living longer in retirement. While this is to be welcomed, this has obvious and significant implications in relation to the future costs of State pension provision. The fundamental principle that people need to participate in the workforce for longer needs to be emphasised and they need to contribute more towards their pensions if they are to achieve the income they expect or would like to have in retirement. People who have retired before State pension age may be entitled to apply for another social welfare payment, as is the current position.

Photo of Joanna TuffyJoanna Tuffy (Dublin Mid West, Labour)
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Question 106: To ask the Minister for Social Protection the position regarding proposals to provide an on-line service which would allow persons to view their contribution records on screen which would enable them to establish their entitlement to a contributory based pension, taking into account the combination of their contribution record at that point and their own projected work pattern prior to reaching pension age; and if she will make a statement on the matter. [26710/11]

Photo of Joanna TuffyJoanna Tuffy (Dublin Mid West, Labour)
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Question 108: To ask the Minister for Social Protection her plans to re-establish the pension forecast service previously offered to persons by her Department; and if she will make a statement on the matter. [26736/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 106 and 108 together.

My Department is committed to delivering the best possible service to its customers and to utilising the potential of modern technology and available delivery channels in meeting this objective. To this end, a new application has been developed and launched early this year which allows for the automatic issue of contribution statements where the person's record is in order and does not require investigation. Production of a statement of contributions involves an examination of both the computerised PRSI records from 1979 and, in some cases, the earlier paper-based records from 1953 to 1979. In normal circumstances, where the record is fully in order, statements are issued within two weeks. However, processing of requests can take longer where further information or clarification of work periods, etc. is required. It is envisaged that this new application will be further developed to provide an on-line facility to enable an individual check their contribution record and to calculate likely pension entitlement. It is not possible, at this point, to provide a timescale for the development of this on-line facility as it will involve complex engineering and requires a high degree of security to cater for data privacy concerns. In the meantime, it should be noted that a statement of contributions can be requested on-line via the Department's PRSI Section at www.welfare.ie.

For administrative reasons, a decision was taken in May 2007 to stop providing the traditional forecast service and to replace this with the provision of a copy of the individual's contribution history along with a booklet entitled 'Working it Out'. The contribution history record, along with the guide, provides the customer with the information required to decide when to retire and how best to optimise their State Pension entitlement. The change has also enabled the State Pension Section to concentrate on the primary task of processing pension claims and in implementing improvements to the service provided to people on reaching pension age.

State Pension claims are now processed in a timely manner, with in excess of 90% of these claims awarded before the customer reaches pension age. The Department has also developed a claim initiation service whereby customers who are known to have an entitlement to State Pension are pro-actively invited to apply.

There are no plans to re-establish a pensions forecasting service as the focus remains on processing pension claims in a timely manner and available resources are prioritised for this purpose. However, the Department will continue to provide the current service (a copy of the person's record along with the information booklet) to enable customers to work out their entitlements and the network of Local Offices and Citizens Information Offices will continue to serve as points of contact to assist people in this regard.

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