Written answers

Wednesday, 11 July 2018

Department of Employment Affairs and Social Protection

State Pensions Reform

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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568. To ask the Minister for Employment Affairs and Social Protection the number of persons who will benefit nationally under planned changes to the State pension; and if she will make a statement on the matter. [31598/18]

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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569. To ask the Minister for Employment Affairs and Social Protection the number of persons who will benefit in County Cork under planned changes to the State pension; and if she will make a statement on the matter. [31599/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 568 and 569 together.

It is estimated that two-thirds of those affected by the rate band changes in September 2012, will see their rate of payment increased under the interim Total Contributions Approach (TCA) announced on 23 January. The precise number cannot be known at this time as there may be inflows from persons on other schemes, such as the State Pension (non-contributory) or those in receipt of an Increase for Qualified Adult (IQA).

In the main, people with home-making/caring periods pre-1994, which are not covered under the current home-makers scheme, are expected to gain the most from the introduction of the HomeCaring Credits which will be a part of the new approach. There will also be some people with around 40 years contributions with big gaps in their records, who may get an increase in their payment.

Those who are less likely to benefit from the TCA model are people with lower numbers of paid social insurance contributions who have no significant home-making/caring periods. However, it should be understood that no-one will have their rate of payment reduced as a result of this announcement. Anyone who is not better off as a result of this proposal will remain on their existing rate of payment.

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 therefore, it is not possible at this juncture to give a breakdown of the likely beneficiaries.

I hope this clarifies the matter for the Deputy.

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