Bernard Durkan (Kildare North, Fine Gael)
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506. To ask the Minister for Employment Affairs and Social Protection the extent to which she continues to examine the anomalies in respect of payment of the contributory State pension to persons whose contributions over their working lives are sufficient on present criteria to pay a full pension; and if she will make a statement on the matter. [51206/17]

Bernard Durkan (Kildare North, Fine Gael)
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507. To ask the Minister for Employment Affairs and Social Protection her plans for a costing in respect of the payment of a contribution-related pension to all eligible persons; and if she will make a statement on the matter. [51207/17]

Regina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 506 and 507 together.

The National Pensions Framework proposed that a total contribution approach should replace the yearly average approach to the calculation of the State Pension (contributory). Under this approach, the rate of pension paid would more closely reflect the total number of Social Insurance contributions made by a person throughout her or his working life and the incongruities of the Yearly Averaging method of calculating entitlement would be removed.

It is expected that this approach to pension qualification will replace the current one from 2020. I intend that its design will include significant homemaker’s provisions to assist those pensioners who spent considerable periods caring for their children, or adults with a caring need.

A proposal for the precise method of how the Total Contributions Approach will be implemented is currently being finalised by officials in my Department, having recently received the Actuarial Review of the Social Insurance Fund 2015. When this has been finalised, I intend to consult with relevant stakeholders before a decision in made on the final proposal by Government. That proposal will then be subject to the legislative process, and which may result in further changes.

The main aim of Government policy on pensions is to make sure that pensions are affordable, sustainable and keep their value in the coming years. The reforms that are planned will result in a more inclusive and fairer pension system for all citizens.

I hope this clarifies the matter for the Deputy.