Tommy Broughan (Dublin Bay North, Independent)
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30. To ask the Minister for Social Protection his priorities regarding pension payments for the remaining six months of 2016; if he is reviewing pension entitlements for women who worked in the home; and if he will make a statement on the matter. [18695/16]

Leo Varadkar (Dublin West, Fine Gael)
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The State pension contributory is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. To ensure that the individual can maximise their entitlement to a State pension, all contributions paid or credited over their working life from when they first enter insurable employment until pension age are taken into account when assessing their entitlement and the level of that entitlement. Since 1961, when contributory pensions were introduced, the average contributions test has been used in calculating pension entitlement. Once over 16 years of age, the date a person enters into insurable employment is the date used for averaging purposes. In this context, even if someone has only 10 years (520 weeks) of paid reckonable contributions between their 16th and 66th birthdays, they may qualify for a State pension (contributory), although the rate payable would vary depending on their circumstances.

The home-makers scheme makes qualification for a higher rate of State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect from 1994, allows up to 20 years spent caring for children under 12 years of age (or caring for incapacitated people over that age) to be disregarded when a person’s social insurance record is being averaged for pension purposes, subject to the standard qualifying conditions for State pension contributory also being satisfied. This has the effect of increasing the yearly average of the pensioner, which is used to set the rate of their pension. The scheme does not involve the award of credits. The 2007 Green Paper on Pensions estimated an annual cost of backdating the Home-maker's scheme, at that time, as €150 million (if to 1973) or €160 million (if to 1953). However it described those estimates as “extremely tentative” and the passage of time means that the potential cost now could be significantly higher.

It is worth noting that the Actuarial Review of the Social Insurance Fund in 2012 confirmed that the Fund provides better value to female rather than male contributors. This is due to the distributive nature of the Fund. For example, those with a yearly average of only 20 contributions (38% of the maximum) may qualify for 85% of the maximum rate. The Review also examined the changes in the contribution rules and the associated rates of payment which were to be introduced in September 2012. The Review found that those with lower earnings and those with shorter contribution histories still obtain the best value from their contributions, amounting up to 95% of the maximum contributory pension rate.

Work is underway to replace the ‘yearly average’ system with a ‘total contributions approach’. Under this approach, the number of contributions recorded over a working life will be more closely reflected in the rate of pension payment received. It is expected that the total contributions approach to pension qualification will replace the current average contributions test for State pension (contributory) for new pensioners from 2020, although that date is subject to change, as this is a very significant reform with considerable legal, administrative, and technical components to be put in place prior its implementation. The position of women who were home-makers will be considered very carefully in developing this reform.

The Programme for Government contains a commitment to “increase the State Pension and the Living Alone Allowance above the rate of inflation”. Improvements to welfare weekly rates of payment, and any other significant measures that would increase the cost of the State pension, will be considered in the context of the next Budget.

I hope this clarifies the matter for the Deputy.

Clare Daly (Dublin Fingal, Independent)
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31. To ask the Minister for Social Protection if he is concerned that the administration, consultancy and actuarial services to the Central Remedial Clinic plan were all provided by the same organisation (details supplied) and that this organisation also owned the trustee of the plan, given the abrupt wind-up of a plan that the actuary had said in 2014 was on track to meet the minimum funding standard by 21 December 2017; and if he will make a statement on the matter. [18699/16]

Leo Varadkar (Dublin West, Fine Gael)
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The Deputy will appreciate that it is not appropriate for me to comment on matters relating to an individual pension scheme. In the first instance it is the responsibility of the trustees of a pension scheme to ensure compliance with the funding standard and other obligations set out in the Pensions Act 1990, as amended. The Pensions Authority is the regulatory body charged with the supervision of pension schemes and has the necessary powers under statute to investigate the conduct of a pension scheme should it become aware that the trustees of a scheme are not in compliance with the provisions of the Pensions Act. As the Central Remedial Clinic (CRC) is funded by the Health Service Executive under Section 38 of the Health Act 2004, the specific issues raised in relation to the administration, consultancy and actuarial services to the Central Remedial Clinic Pension Plan may be more appropriate for my colleague, the Minister for Health.

I hope this clarifies the matter for the Deputy.