Bernard Durkan (Kildare North, Fine Gael)
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560. To ask the Minister for Employment Affairs and Social Protection the extent to which she expects to be in a position to address the pensions issue for persons that have gaps in their contribution record for whatever reason with a view to ensuring the availability of a payment; and if she will make a statement on the matter. [25554/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The State Pension (Contributory) is a PRSI-based pension, financed by contributions made by current workers and their employers, and paid to pensioners, at a rate based upon their PRSI record when working. Those with few or no PRSI contributions paid over the years may alternatively qualify for the State Pension (Non-Contributory), which is a means-tested pension, financed by the Exchequer, and paid at up to 95% the maximum rate of the State pension (contributory). Alternatively, if their spouse has a contributory pension, they may qualify for an increase for a qualified adult (based on their own means), amounting up to 90% of a full rate State pension (contributory). The most advantageous payment for a pensioner will depend upon their individual circumstances.

The Programme for Government “Our Shared Future” commits to the introduction ofa Total Contributions Approach (TCA). This approach, when it is introduced, is intended to be a fairer and more transparent system aligning a person’s contributory pension more closely with the contributions they make. It is anticipated that the approach will include provision for people who take time off work to undertake caring duties.

The public policy and social issues in relation to funding a sustainable and adequate State pension system are complex. The Programme for Government also commits to the establishment of a Commission on Pensions to examine a range of issues including contributions, calculation methods, sustainability, eligibility and intergenerational fairness. The Terms of Reference for the Commission on Pensions are currently being developed and options for its membership are being considered. Proposals will be brought to Government in that regard as soon as possible. Once it has concluded its deliberations, the Commission will report to Government by June of next year.

This Government is acutely conscious of the need to consider the sustainability of the State’s finances. The State Pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. The Government is committed to ensuring that this remains the case.

I hope this clarifies the matter for the Deputy.