Willie O'Dea (Limerick City, Fianna Fail)
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To ask the Minister for Social Protection the information campaign undertaken by her to inform persons affected by changes to the State contributory pension scheme that came into effect in April 2012; her future plans for an information campaign; and if she will make a statement on the matter. [38913/12]

Joan Burton (Dublin West, Labour)
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On 6 April 2012, the minimum social insurance contributions required to qualify for a State pension (contributory/transition) increased from 260 contributions to 520 contributions. This change had been provided for in legislation since 1997 and has featured in all of my Department’s relevant communications, information leaflets, booklets and on the Department’s website since then. Officials of my Department held meetings in January with the customer groups representing older people to outline the changes to State pension (contributory/transition) that were being introduced this year including the increase in the minimum contribution requirement. Feedback was sought from these groups and included in an information pack that was prepared to further publicise the changes to the scheme.

The finalised information pack was published in early March on the Department’s website, and on twitter and was made available through the Citizens Information Board website www.citizensinformation.ie. It was widely circulated to customer representative groups including those representing older people, working age groups, farming groups, trade unions, employer groups, accountancy bodies etc. It was also forwarded to all members of the Oireachtas. Presentations on the introduction of these changes were also made at the Department’s regular briefings with customer representative groups and to members of the public over the course of the year.

I am satisfied that information on the introduction of the changes has been disseminated extensively. The relevant customer representative groups were consulted at an early stage, the information pack was circulated widely, including to members of the Oireachtas, and it is available on the websites of my Department and the Citizens Information Board.

Willie O'Dea (Limerick City, Fianna Fail)
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To ask the Minister for Social Protection the number of persons affected by the changes to the State contributory pension scheme that came into effect on 6 April 2012; and if she will make a statement on the matter. [38914/12]

Joan Burton (Dublin West, Labour)
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A number of minimum paid contributions are required to qualify for a State pension (contributory). The change introducing an increase in the minimum number of paid contributions was provided for in legislation in 1997. The first part of this measure, which increased the minimum qualifying contributions for State pension contributory from 156 to 260, was implemented by a previous government in 2002. The second part, increasing the minimum number of qualifying contributions from 260 to 520 was introduced in April 2012. Those affected from April 2012 amount to an estimated 1,200 people per annum, who will not now qualify for a State pension (contributory), but may have an entitlement to a means-tested State pension (non-contributory).

These changes reflect the comprehensive coverage of the social insurance system and take into consideration the fact that the State pension is a very valuable benefit. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives.

Recent changes to State pension supports the direct link between contributions made and the rate of pension received which underpins State pension policy. This ensures that those who contribute more during a working life benefit more in retirement than those with lesser contributions. This has been the policy of successive governments since the relevant legislation was first enacted in 1997. The sustainability of pensions into the future is also important given the changing demographics, the increased numbers of those over 65 and increased longevity and reduced dependency ratio. There are currently six people of working age for every pensioner and this ratio is expected to decrease to less than two to one by 2050. Therefore, the task of financing increasing pensions will fall to a diminishing share of the population.

As social structures in Ireland are changing rapidly, the structures of our social support need to change to accommodate this and the changes to State pension have been made in the context of changing demographics and the fact that people are living longer and healthier lives.

Willie O'Dea (Limerick City, Fianna Fail)
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To ask the Minister for Social Protection the estimated savings from the changes to the State contributory pension scheme that came into effect on 6 April 2012; and if she will make a statement on the matter. [38915/12]

Joan Burton (Dublin West, Labour)
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Because the State pension is a very valuable benefit it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. The sustainability of pensions into the future is important given the changing demographics, the increased numbers of those over 65 and increased longevity and reduced dependency ratio. That is why there have been a number of changes to State pension including the long heralded move to 520 paid contributions from April 2012 as one of the qualifying conditions for State pension. In terms of savings, based on the current levels of new claims, the savings are expected to be in the region of €6m per annum. This reflects the change in the qualifying rules with a requirement to have a minimum of 520 (ten years) paid contributions. The means tested State pension (non- contributory) will be available for those with an income need.

Willie O'Dea (Limerick City, Fianna Fail)
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To ask the Minister for Social Protection her plans to address concerns amongst women affected by changes to the State contributory pension that came into effect on 6 April 2012. [38916/12]

Joan Burton (Dublin West, Labour)
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The sustainability of pensions into the future is important given the changing demographics, the increased numbers of those over 65 and increased longevity and reduced dependency ratio. Because the State pension is a very valuable benefit it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. That is why there have been a number of changes to State Pension, including the move to 520 paid contributions from April 2012 as one of the qualifying conditions for State pension. People who leave the workplace for homemaking/caring purposes can, if eligible, avail of the homemakers scheme which helps to provide a higher rate of pension for those who meet the qualifying conditions.

It is important in assessing any rates of payment, that we focus on the real impact of social welfare payments. In this regard, it should be noted that older people do not experience the levels of poverty that existed in the past. This can be clearly seen in a wide range of data such as the significant reduction in the ‘risk of poverty’ rate from 27.1% in 2004 to 9.6% in 2010. The consistent poverty rate over the same period also declined from 3.9% to 0.9%. If one examines deprivation rates from a gender perspective, it can be seen that in 2009, the deprivation rate of older men at 7.6% was lower than the deprivation rate of older women at 11.1%. However, in 2010 this pattern has reversed and the data now shows us that older women suffer lower rates of deprivation at 6.9% compared to 11.8% for older men. Women who do not qualify for a pension or are affected by other changes to State pension may, if their spouse is in receipt of a State pension contributory, receive a qualified adult payment at a higher rate where they satisfy a means test. A State pension non-contributory, which is a means tested payment, may also be payable.

The Actuarial Review of the Social Insurance Fund shows that, notwithstanding the changes in the contribution rules and associated rates of payment introduced in September 2012, those with lower earnings and those with short contribution histories can fare better than those with full contribution histories, which is of particular importance to women. The report also shows that the Fund provides better value to female than to male contributors.