Michael Fitzmaurice (Roscommon-Galway, Independent)
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582. To ask the Minister for Employment Affairs and Social Protection when the new method for calculating pensions will be introduced; and if she will make a statement on the matter. [13615/18]

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 has confirmed its intention to proceed with that policy in its recently published Roadmap for Pensions Reform. To that end, and to inform the final design of the system, a public consultation will be conducted later this year, and the necessary legislative, technical and administrative arrangements will be determined and developed thereafter.

The Government also announced in January that those affected by the 2012 rateband 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.

The new TCA for pensioners assessed under the 2012 rate band changes, comes into effect from the 30th March 2018. Pensioners do not need to contact the Department at this juncture. Instead, the Department will invite pensioners, who were assessed under the current rate bands in place since 2012, to have their pensions recalculated under TCA to determine if they qualify for a higher rate of entitlement. However legislation has to be drafted and enacted to enable implementation of these arrangements and IT solutions in line with this legislation must be developed. Accordingly, it is planned that the reviews will commence in the 4th Quarter of this year, with the first payments being made in the 1st Quarter of 2019.

I hope this clarifies the matter for the Deputy.