John Brady (Wicklow, Sinn Fein)
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568. To ask the Minister for Employment Affairs and Social Protection if a decision has been made to base the pension review for those impacted by the 2012 changes on a 40 year contribution record in order to gain a full State pension (contributory); if this decision has been made for the TCA model; if so, the reason 40 years has been chosen; if consultations on this decision took place with trade unions and key stakeholders; and if she will make a statement on the matter. [53920/18]

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 2020.

In advance of this, on 23 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 using an interim “Total Contributions Approach” (TCA) which will include up to 20 years of a new HomeCaring periods. 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). No-one will lose as a result of this option, and people will be paid whichever model produces the higher payment.

It was announced at that time, in January 2018, that the number of years required under this approach ("TCA2012") would be 40, and this was set out in the legislation before the Houses of the Oireachtas this month. While it will not become law until enactment, is has been clearly planned that it be based on 40 years since it was announced, and that position has not changed.

40 years was chosen based upon it being a reasonable figure, commonly used in other pension schemes and systems, and with an allowance of up to 20 years of HomeCaring periods, it means a maximum pension can be earned with just 20 years of paid contributions, which would be generous by international standards. The balance between years required and homecaring periods allowed for was decided by Government in the context of representations that had been made by various stakeholders, the Exchequer funds available, the sustainability of the pension system, and the principles of fairness and gender equality. An alternative balance - for example, 30 years required, but only 10 years of homecaring periods, all post-1994, as originally proposed in the National Pensions Framework - would have been more advantageous for some pensioners, but would have been of limited benefit for women who were most affected by the 2012 rateband changes.

I launched a public consultation on the design of the full TCA to be introduced from 2020 on the 28th of May to which stakeholder groups were invited including the Irish Congress of Trade Unions. A number of workshops were also held on the day to elicit views and feedback. All Oireachtas members were also invited to a briefing in Leinster House. The consultation was open for over 3 months and we received almost 300 responses from individuals and organisations including open written submissions. Those submissions outlined the views of respondents upon a number of issues, including the number of years required for a full pension, as intended as part of the consultation process.

There has been no decision on the number of years required to qualify for a maximum rate pension under the Total Contributions Approach that will apply from 2020. Analysis of the views submitted is being finalised, and I understand will be submitted to me in the coming months. When I have considered this analysis, I will bring a proposal to Government in due course. The scheme will be introduced through the standard democratic process, and the balance of the proposal will, I believe, be broadly debated by members of the Oireachtas.

I hope this clarifies the matter for the Deputy.