James Browne (Wexford, Fianna Fail)
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565. To ask the Minister for Employment Affairs and Social Protection the credits available to pensioners vis-à-vis the State pension; and if she will make a statement on the matter. [11086/18]

Michael McGrath (Cork South Central, Fianna Fail)
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584. To ask the Minister for Employment Affairs and Social Protection the eligibility criteria for the State pension (contributory) that will apply for persons who will reach pension age in 2020; and if she will make a statement on the matter. [11400/18]

Regina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 565 and 584 together.

PRSI contributions can be credited to people in a number of contexts, for example when in receipt of a Jobseekers or Illness benefit payments. Where applicable, these may be used towards PRSI-based social protection payments, including the State pension contributory.

A policy to introduce the Total Contributions Approach (TCA) to pensions calculation was adopted by Government in the National Pensions Framework in 2010, as was the decision to base the entitlements of all new pensioners on this approach from around 2020.

On the 23rd January, the Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated by a new interim “Total Contributions Approach” (TCA) which will include up to 20 years of a new HomeCaring credit.

This approach is expected to significantly benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. It will make it easier for pensioners assessed under the current yearly average model, to qualify for a higher rate of the State Pension (contributory). The TCA will ensure that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines their final pension outcome. Under this new arrangement, a person who reached pension age after 1st September 2012 and has a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of the new HomeCaring credits, will qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. Up to 10 years of other credits, for example when unemployed or ill, may also be used, subject to the total number of credits not exceeding 20 years. So, for example, a person might receive a maximum pension based on 20 years paid PRSI contributions, 5 years jobseeker credits, and 15 years HomeCaring Credits, over a 50 year period. Invalidity pensioners and Widows will continue to generally qualify for a full pension.

For those who do not qualify for the State Pension (contributory) (SPC), there are other state pension payments available. Notably, they may qualify for the State Pension (non-contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC. If their spouse has a contributory pension, they may qualify for an increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC pension.

The TCA model for post-2020 pensioners has yet to be decided upon, as the design will not be finalised until after a public consultation later this year. There are a number of factors, not just the number of years required for a full pension, which influence outcomes, and I will consider very carefully the priorities identified by stakeholders in that consultation process.

I hope this clarifies the matter for the Deputies.