Paul Kehoe (Wexford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

217. To ask the Minister for Employment Affairs and Social Protection the reason a person (details supplied) is on a reduced rate contributory pension; the options are available to the person; and if she will make a statement on the matter. [19253/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The person concerned reached pension age on 24 January 2014. According to the records of my Department, they have a total of 758 qualifying paid and credited Irish contributions which equates to a yearly average of 16 contributions. This gives an entitlement to a standard State pension (contributory) at 65% of the maximum rate. They were notified in writing of this decision and arrears due on 27 November 2013.

The person concerned appealed this pension decision to the independent Social Welfare Appeals Office. An Appeals Officer concluded that the person’s claim had been decided correctly in line with the provisions of social welfare legislation.

In January 2018, HomeCaring Periods were introduced as part of the 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 thus affected by post-2012 Budget pension rates. The TCA provides for up to 20 years of home caring periods in that pension entitlement calculation for applicants who took time out of the workplace for parenting or caring duties.

The person concerned was reviewed under this approach and awarded 1,038 HomeCaring periods which increased their rate of State pension (contributory) entitlement from 65% to 88.51% of the maximum rate. They were notified in writing of this decision and arrears due on 10 May 2019.

An alternative to the State pension (contributory) is the means-tested, residency based State pension (non-contributory). Social welfare legislation provides that the means test takes account of the income and assets of the applicant and spouse/civil partner/cohabitant as applicable. Income and assets include income from employment, self-employment, occupational pensions, maintenance payments as well as property owned (other than the family home) and capital such as savings, shares and other investments. Applicants with assessed weekly income of less than €262.50 (at current rates) may qualify for a State pension (non-contributory).

If a person applies for both pensions, their eligibility and rate of pension entitlement is determined based on the qualifying conditions of the respective schemes. Where an applicant qualifies for both pensions, they are paid whichever pension is more financially beneficial to them, since both schemes cannot be paid concurrently.

I hope this clarifies the position for the Deputy.