Written answers

Tuesday, 10 December 2019

Department of Employment Affairs and Social Protection

Pensions Reform

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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629. To ask the Minister for Employment Affairs and Social Protection the steps she has taken to inform the public of the increase in the pension age to 67 years of age in 2021; and if she will make a statement on the matter. [51578/19]

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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639. To ask the Minister for Employment Affairs and Social Protection the steps taken to inform persons of the increase in pension age due to come into effect in 2021; and if she will make a statement on the matter. [51741/19]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 629 and 639 together.

The National Pensions Framework was launched by my Department at a press event in March 2010. The Framework stated that the State Pension age would be standardised at 66 with the abolition of the State Pension (transition) in 2014 and would be increased to 67 and 68 in 2021 and 2028 respectively. The Framework received significant media attention at the time as it proposed a number of reforms to the pensions landscape.

The changes to state pension age were legislated for in the 2011 Social Welfare and Pensions Act and, as I'm sure you are aware, have been the subject of significant discussion in the media since. In recent times we have conducted a variety of consultations and press events relating to reform of the Irish pension system including, within the last 18 months alone, the Roadmap for Pensions Reform 2018-2023, the introduction of an Auto-enrolment supplementary pension and the introduction of a "Total Contributions Approach" to the State Pension. Information on the changes to the State Pension age is provided as part of all standard briefings on State Pension.

Ahead of the increase in State Pension age to 67 on January 1st 2021, we will ensure that all those effected by the change in age, and any other reforms that may be implemented prior to that date, will be fully aware of how the changes impact upon them well in advance of the change taking effect.

I hope this clarifies the matter for the Deputies.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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630. To ask the Minister for Employment Affairs and Social Protection if an impact assessment of increasing the contributions required to qualify for a State pension from 30 to 40 contributions under the total contribution approach that is due to come into effect in quarter 3 of 2020 has been conducted; the number of persons that may not be entitled to a full rate of State pension under the changes; and if she will make a statement on the matter. [51579/19]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The consultation process on the proposed reforms dates back to October 2007 when the Government published the Green Paper on Pensions to stimulate debate on the challenges and options for the future development of pensions. This consultation informed the development of the 2010 National Pensions Framework which included the policy to introduce the Total Contributions Approach (TCA) for the State pension (contributory). This policy was endorsed by a subsequent review of the Irish Pensions System published by the OECD in 2013.

The Roadmap for Pensions Reform 2018-2023 is focused on implementing polices that have already been well debated and have broad support. In particular that the State pension will be reformed in line with the TCA recommended in the National Pensions Framework.

Consultation is a very important part of the development and design of the new pension. With this in mind, I launched a public consultation on the design of the TCA on the 28thof May 2018 to which a wide variety of stakeholder groups were invited. A number of workshops were also held on the day to elicit views and feedback.

Shortly afterwards, Oireachtas members were invited to a detailed briefing by my officials in Leinster House. The consultation was open for over three months and the Department received almost 300 responses from individuals and organisations. Those submissions outlined the views of respondents on the issues of most interest to them.

Having carefully examined the outputs of the consultation process a number of issues were raised in the public consultation, not simply restricted to the TCA reform itself and I am looking to build a model that answers the concerns raised, that is fair, and which is also sustainable into the future.

Officials in my Department are reviewing options for the precise model but a final decision on the model has not yet been made by Government.

It is anticipated that the new TCA model will come into effect in Q3 2020.

I hope this clarifies the matter for the Deputy.

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