Written answers

Tuesday, 3 November 2020

Department of Employment Affairs and Social Protection

Pension Provisions

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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854. To ask the Minister for Employment Affairs and Social Protection if she will address the case of a person (details supplied); and if she will make a statement on the matter. [32562/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The person concerned reached pension age on 4 September 2018. According to the records of my Department, they have a total of 906 qualifying full-rate paid contributions and 73 full-rate credited contributions from their date of entry into insurable employment on 17 January 1972 to end-December 2017. This equates to a yearly average of 23 contributions and gives them an entitlement to a standard State pension (contributory) at 85% of the maximum rate. They were notified in writing of this decision on 1 October 2018.

Under the Homemaker's Scheme, any years that an insured person spent as a homemaker since 6 April 1994 are disregarded when working out their yearly average period for a State pension (contributory). A disregard of five years was applied to this person’s pension calculation.

Since the person concerned was employed in the public sector from 1971/72 to 1986, during which period modified contributions were payable, their entitlement to a mixed insurance pro rata State pension (contributory) was also determined, based on their combined modified and full-rate social insurance records. However, their rate of pension entitlement was lower than their current standard rate of pension. Their public sector employment record was recently reviewed as requested by the person concerned, but their rate of entitlement to a mixed insurance pro rata pension remains lower than their current standard rate of pension. They were notified in writing of this decision on 21 October 2020.

An interim Total Contributions Approach (TCA) was introduced in January 2018 as an alternative to the ‘yearly average’ method of calculating pension entitlement for those State pension (contributory) customers born on or after 1 September 1946 and therefore affected by post-2012 Budget pension rates. The TCA provides for up to 20 years of HomeCaring Periods in their pension entitlement calculation for applicants who took time out of the workplace for parenting or caring duties.

When the person’s State pension (contributory) was reviewed under this approach, they were awarded 603 HomeCaring Periods. However, their rate of pension entitlement would still be lower than their current standard pension rate. They were notified in writing of this decision on 12 June 2019.

Accordingly, the person concerned is in receipt of the correct rate of State pension (contributory), commensurate with their social insurance record as held by my Department.

I hope this clarifies the position for the Deputy.

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