Joan Collins (Dublin South Central, Independent)
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59. To ask the Minister for Employment Affairs and Social Protection when she will bring a complete report to Cabinet on the pension anomaly introduced in 2012. [50316/17]

Willie O'Dea (Limerick City, Fianna Fail)
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64. To ask the Minister for Employment Affairs and Social Protection when the report on the impact to the 2012 changes to the contributory pension will be published; and if she will make a statement on the matter. [50502/17]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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71. To ask the Minister for Employment Affairs and Social Protection when the report on the effect of 2012 changes to the calculation of pensions on women in particular will be published; and if she will make a statement on the matter. [50587/17]

Regina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 59, 64 and 71 together.

Spending on State pensions has increased rapidly in recent decades. This year, the cost is €7.3 billion. This is estimated to increase by €1 billion every five years due to the increased number of pensioners. These projections mean that there are considerable sustainability and affordability challenges in the years ahead and we must continue to address them.

There are two State pensions. Firstly, the State pension non-contributory is a means-tested pension funded from taxation. Secondly, the State pension contributory, which is not means-tested, is paid from the Social Insurance Fund.

Accordingly, it is important to ensure that those qualifying for that pension have made a sustained contribution to the Social Insurance Fund over their working lives.

In 2012 rate bands were introduced which more closely reflect the social insurance contributions history of a person than those in place prior to then. It must be noted that people with only 20 years of contributions over nearly 50 years will still get an 85% contributory pension, or a non-contributory pension of up to 95% that of the maximum contributory rate, subject to their means.

Reverting to the pre-2012 bands would move additional resources to people who already have means, and it is estimated that it would result in an annual cost of well over €70 million in 2018, and this annual cost would increase by an estimated €10 to €12 million extra each following year.

It is my intention to introduce a Total Contributions Approach to the calculation of the State Pension (Contributory) from 2020 onwards and I’ll be bringing forward proposals in this regard in the near future.

In the meantime, I have asked my officials to carefully examine approaches that may help to address the issue in relation to the averaging approach as it affects people with a short work period early in their career followed by a long break. We need to ensure that any proposed approach does not cause further anomalies or disadvantages to arise. We also need to determine, as best we can, the cost of any such approach and how that can be financed in the future. When they report to me, I will consider the options available, and bring the matter to cabinet committee and thereafter to Government for approval.

I want to ensure that any approach taken is fair and sustainable in the long term.

I hope that this clarifies the matter for the Deputies.