Mary Butler (Waterford, Fianna Fail)
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741. To ask the Minister for Employment Affairs and Social Protection the reason October 1946 was chosen as the cut-off date for those affected by pension anomalies since the changes in legislation in 2012; her plans on making changes to this date; if she will consider inclusion of those born prior to this date whose pensions were affected; and if she will make a statement on the matter. [7033/19]

Regina Doherty (Meath East, Fine Gael)
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In January last year I announced a new Total Contributions Approach (TCA) to calculating the entitlement of pensioners who reached state pension age on or after 1 September 2012 (i.e., those born on or after 1 September 1946) and who have a reduced rate pension entitlement based on post Budget 2012 rate bands.

People whose pensions were decided prior to 1 September 2012 were not affected by the Budget 2012 rateband changes. As a consequence, people whose pensions were calculated under the 2000-2012 ratebands were subject to a significantly more generous regime than those who qualified before or afterwards, as a Yearly Average of only 20 contributions per year (out of a maximum of 49) could attract a 98% pension. The effect of the Budget 2012 rateband changes, as it impacted upon those new pensioners since September 2012, will be familiar to anyone who followed the debate on this matter over the last 6 years. If pre-September 2012 pensioners were also allowed avail of HomeCaring Credits, their arrangements, as a group, would continue to be significantly more generous than those of post-2012 pensioners. There would also be a very significant cost which would be expected to be of the order of several hundred millions of euros each year. This in turn could significantly impact funds for future pension increases with consequential implications for pensioner poverty.

For those with insufficient contributions to meet the requirements for a State pension (contributory), they may qualify for a means tested State pension (non-contributory), the maximum personal rate for which is €232 (over 95% of the maximum rate of the contributory pension). This rate of payment does not include rent allowance, household benefits or fuel allowance. Alternatively, if their spouse is a State pensioner and they have significant household means, their most beneficial payment may be an Increase for a Qualified Adult, based on their personal means, and amounting up to 90% of a full contributory pension.

I hope this clarifies the matter for the Deputy.