Written answers

Tuesday, 9 June 2020

Department of Employment Affairs and Social Protection

State Pension (Contributory)

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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637. To ask the Minister for Employment Affairs and Social Protection the status of the review into entitlement to the State pension (contributory); the number of cases reviewed to date; the number of cases that remain to be reviewed; the number that had their pension increased; the number whose pension remained the same; and if she will make a statement on the matter. [9709/20]

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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638. To ask the Minister for Employment Affairs and Social Protection if a breakdown of the review of entitlement to the State pension (contributory) to date by county will be provided; the number of cases reviewed by county; the number in each county that were awarded increases in their pension; the number in each county whose pension stayed the same; and if she will make a statement on the matter. [9710/20]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 637 and 638 together.

In January 2018, I announced an interim total contributions approach (TCA) to the calculation of pension entitlement for those State pension (contributory) customers born on or after 1 September 1946 and in receipt of pension on post-2012 rates. This TCA provides for up to 20 years of HomeCaring Periods in the pension entitlement calculation for applicants who took time out of the workplace for parenting or caring duties.

All contributory pensioners born on or after 1st September 1946 who had a reduced contributory pension based on post budget 2012 rate bands have now been reviewed. The reviews provided for under the Social Welfare, Pension & Civil Registrations Act 2018 commenced from 13 February 2019, the day after I signed the necessary Regulations. From April 2019, all State pension (contributory) applications are being assessed under all relevant rate calculation methods, including the interim total contributions approach.

When the TCA reviews were concluded at end-October 2019, a total of 94,258 reviews were completed, of which 56% were women and 44% were men. As these reviews were processed, pensioners were notified and increases (where awarded) paid, together with arrears backdated to 30 March 2018, or the person’s 66th birthday if later. Those who did not qualify for an increase in payment (59% of those reviewed) continue to receive their existing weekly rate.

An increase in pension entitlement was awarded to 54% of women and 24% of men. 20,129 pensioners increased their rate of payment to the maximum rate of pension (72% women; 28% men).

Please see below in tabular form details of claimants reviewed, according to their county address at the time of review. The figures represent 90% of total reviews, and include those who received an increase in their rate of payment and those who remained on their existing rate of payment.

County
Reviewed by County
Carlow 997
Cavan 1,347
Clare 2,510
Cork 9,305
Donegal 2,729
Dublin 22,091
Galway 4,761
Kerry 3,159
Kildare 3,672
Kilkenny 1,636
Laois 1,189
Leitrim 689
Limerick 3,632
Longford 752
Louth 2,046
Mayo 2,850
Meath 3,239
Monaghan 1,178
Offaly 1,299
Roscommon 1,344
Sligo 1,459
Tipperary 3,105
Waterford 2,052
Westmeath 1,672
Wexford 2,832
Wicklow 3,047

I hope this clarifies the matter for the Deputy.

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 status of plans to move to a total contributions approach for calculating entitlement to a State pension (contributory); and if she will make a statement on the matter. [9711/20]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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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.

Consultation is a very important part of the development and design of such a new approach. With this in mind, a public consultation on the design of the TCA was launched on the 28th May 2018. A wide variety of stakeholder groups were invited to this launch. In addition, the consultation involved a number of workshops with representative bodies, and a briefing and Question & Answer session for Oireachtas members by Department officials in Leinster House.

The online consultation lasted for over three months and the Department received nearly 300 responses from individuals and organisations. Those submissions outlined the views of respondents on a number of issues, including the number of years required for a full pension, provision for home caring periods and for the self-employed.

Having carefully examined the outputs of the TCA consultation process, officials in the Department are designing the scheme, with a view to including significant recognition for home caring periods in the new model. The final design of the model will need to be brought to Government for its consideration and approval.

I hope this clarifies the matter for the Deputy.

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