Clare Daly (Dublin Fingal, Independent)
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54. To ask the Minister for Social Protection his views on the fact that changes to the contributory State pension introduced in 2012 will result in tens of thousands, if not hundreds of thousands of workers, receiving in some circumstances, a pension of 60% below the full contributory State pension; and if he will make a statement on the matter. [17756/17]

Leo Varadkar (Dublin West, Fine Gael)
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The current rate bands applying to the State pension (contributory) were introduced from September 2012, replacing the rates introduced in 2000. The new rate bands reflect the social insurance contributions history of a person more closely, although alternative payments are available for those with small additional means. It is estimated that to revert to the previous bands would cost at least €60 million in 2018.

Since the new rate bands came into effect, less than 2% of new contributory pensioners are paid a contributory pension at the minimum 40% rate of €95.20. Four years after their introduction, this has amounted to 2,000 pensioners, and so it will in no way reach the levels suggested in the question.

Most people with a yearly average of 10-14 contributions may qualify instead for a non-contributory pension, the maximum rate of which is €227, or 95% of the maximum contributory rate. Over 70% of these are paid at the full rate. If someone does not qualify at a rate greater than €95.20, it is because they have been assessed as having household means in excess of €160, in addition to their State pension.

Otherwise, they may claim an Increase for a Qualified Adult on their spouse's state pension, based on their personal means. This is up to €213.50, or 90% the rate of the contributory pension, and over 80% of recipients are paid at that full rate. For such a person to be paid more on a 40% contributory pension, they would have to have additional personal means of more than €118 per week.

Those who receive a 40% rate pension are generally, therefore, among the minority of pensioners with very significant household and personal means.

I hope this clarifies the matter for the Deputy.