Written answers

Wednesday, 13 May 2020

Department of Employment Affairs and Social Protection

Pension Provisions

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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1207. To ask the Minister for Employment Affairs and Social Protection her plans to re-examine the issue of a pro-rata pension for persons that do not have the required number of PRSI contributions to obtain a State pension (contributory); and if she will make a statement on the matter. [5283/20]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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In April 2012, the number of paid PRSI contributions required to qualify for a State Pension (Contributory) increased from 260 to 520. The enabling legislation that brought about this change was contained in the Social Welfare Act 1997.

The actuarial value of the State Pension is estimated at over €300,000 which requires people who claim a contributory pension to have made at least 10 years of paid contributions over 50 years of a working age life.

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 currently €237 (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.

The Total Contributions Approach (TCA), when it is introduced, is intended to be a fairer and more transparent system where the person’s lifetime contribution will be more closely reflected in the benefit received. Having carefully examined the outputs of a consultation process, officials in the Department are designing the scheme. It is anticipated that there will be significant recognition for homecaring periods in the new model. The intention is to bring a proposal to Government setting out that design in the near future.

My Department regularly reviews its supports and payment schemes to ensure that they continue to meet their objectives. However, any improvements or additions to these supports can only be considered in the overall budgetary context and in the light of available financial resources.

I hope this clarifies the matter for the Deputy.

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