Written answers

Tuesday, 17 October 2017

Department of Employment Affairs and Social Protection

State Pensions

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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591. To ask the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 1,554 of 26 July 2017, her plans to amend the legislation and regulations in regard to eligibility for State pension purposes; if such provisions will be included in the forthcoming Social Welfare Bill; and if she will make a statement on the matter. [43972/17]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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Officials in the Department are currently working on the detailed development of the ‘Total Contribution Approach’ (TCA). It is expected that the TCA will replace the yearly average approach for new pensioners from around 2020. The aim of this approach is to make the rate of contributory pension more closely match contributions made by a person. This is a very significant reform with considerable legal, administrative, and technical elements in its implementation, which will take a number of years to complete. An important element in the final design of the scheme will be the position of women who have gaps in their contribution records as a result of caring duties, and this factor is being considered very carefully in developing this reform.

Data from the independent actuarial review of the Social Insurance Fund is currently being analysed to cost options for the new approach. Following that analysis, a paper will be prepared, outlining and costing various alternatives, including, as promised, options regarding homemaker periods. My Department will then conduct a period of consultation with relevant stakeholders, providing them with information and requesting that they outline what they consider should be the priorities in this reform. After the consultation period, I will submit a proposal to Government seeking approval of the new approach. Following a Government decision, legislation will be prepared for consideration by the Oireachtas.

I hope this clarifies the matter for the Deputy.

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