John Brady (Wicklow, Sinn Fein)
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569. To ask the Minister for Employment Affairs and Social Protection the provisions which will be put in place for those who qualified for a reduced State pension post-2012 pension changes when a person was self-employed and lost out on pension contributions as a result; the measures which will apply further to the announcement made on the 2012 changes for this category of persons; and if she will make a statement on the matter. [11154/18]

Regina Doherty (Meath East, Fine Gael)
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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.

The Government announced in January that those affected by the 2012 rate band changes will also have the option of availing of a TCA-based pension, if it is to their advantage. The TCA model being made available to them will award a maximum rate pension for those with 40 years contributions (including up to 20 years HomeCaring credits), and pro-rata payments for those with fewer contributions. Up to 10 years ordinary credits (e.g. for Jobseekers or Illness Benefit) may also be used, subject to the total number of HomeCaring and ordinary credits not exceeding 20 years.

Where a person has been in self-employment from the introduction of compulsory Class S contributions from 1988 until reaching State pension age, they may already receive a maximum rate State pension contributory, subject to meeting the general conditions for payment. If not, they may still benefit from the new TCA arrangements, depending on their circumstances.

The main focus of this reform has been to reward those who either made contributions into the Social Insurance Fund, or to recognise the contribution of those who took time out of the workforce to raise children. If someone made very little of either such contributions, and if their means are such that they would not qualify for a 95% state pension non-contributory (e.g. if they have substantial private or occupational pensions), they may benefit more from existing arrangements.

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.

I hope this clarifies the matter for the Deputy.