Aindrias Moynihan (Cork North West, Fianna Fail)
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567. To ask the Minister for Employment Affairs and Social Protection when legislation to implement the planned changes to the State pension will be introduced; and if she will make a statement on the matter. [31597/18]

Regina Doherty (Meath East, Fine Gael)
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In January the Government agreed an interim Total Contributions Approach (TCA) solution for those affected by the 2012 rate-band changes. Under this approach, a person who reached pension age after 1 September 2012 (i.e. who is among those affected by the new ratebands introduced from that date) and who has a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of credits, will qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. Those with lesser records may qualify for a pro-rata amount.

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 yearly average model, to qualify for a higher rate of the State Pension (contributory). This interim TCA will ensure that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines a final pension outcome.

Work is underway to draft legislation to enable implementation of these arrangements. In line with the legislation, IT solutions must be developed to implement the changes. Accordingly, in the final quarter of this year, the Department will begin inviting impacted recipients of the State Pension (contributory) to seek a review of their pension calculations, with the first payments being made in the first quarter of 2019, backdated to the 30th March 2018.

This interim TCA solution is distinct from the one which will apply for all new pensioners from 2020, and which is currently subject to a public consultation. The final design of that TCA model will be proposed to Government before the end of this year.

I hope this clarifies the matter for the Deputy.