Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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708. To ask the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 389 of 15 November 2016, the timeframe for proposals to be made available; if entitlement to a mixed insurance pro rata pension will still be an option for persons that have employment both in the public and private sectors; and if she will make a statement on the matter. [39532/17]

Regina Doherty (Meath East, Fine Gael)
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To qualify for a state pension (contributory) a person must have at least 520 paid contributions and satisfy a yearly average condition (a yearly average of 48 contributions paid or credited is required for a full rate State pension (contributory), and reduced rates of payment may be payable for pensioners with lower averages). Once over 16 years of age, the date a person enters into insurable employment is the date used for averaging purposes.

The National Pensions Framework (2010) proposed that a “Total Contributions Approach” (TCA) should replace the yearly average approach, for new pensioners from 2020. The aim of this approach is to make the rate of contributory pension more closely match contributions made by a person. Officials of my Department are currently working on the detailed development of the TCA with a view to making proposals for consideration later in the year. This is a very significant reform with considerable legal, administrative, and technical elements in its implementation. Following completion of the Actuarial Review of the Social Insurance Fund later this year, a refined proposal will be developed.

My Department will then conduct a period of consultation with relevant stakeholders including interest groups, representative bodies and the Oireachtas. Following the consultation period, I will submit a proposal to Government seeking approval of the new approach, which in turn will require legislation to be passed by the Oireachtas.

There is no single Pro Rata Contributory Pension. However there are arrangements which operate on such a basis. A mixed insurance pro-rata State pension is one of a number of alternative qualifying methods introduced to ensure that as many people as possible qualify for a State pension contributory. This was introduced in 1991 and was designed to ensure that people who have contributed to the social insurance system at different rates receive a pension which reflects the proportion of full rate contributions which exists in their overall insurance record.

This pension is calculated by taking the total number of contributions (modified and full rate) a person has paid over their working life and applying the average contributions test to arrive at the rate which would be paid if all contributions were at the full rate. The actual rate to be paid is determined by the proportion of full rate contributions in the overall record. There are also pro-rata arrangements which may apply when calculating pensions due under international social security agreements. The requirements to qualify for such pensions may depend upon the circumstances of the person and their insurance record in Ireland and abroad.

I hope this clarifies the matter for the Deputy.