Cathal Crowe (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

878. To ask the Minister for Employment Affairs and Social Protection the options available for a person (details supplied) who has been told they do not have enough stamps for a contributory pension. [32864/20]

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

The person concerned reached pension age on 24 April 2012. They applied for State pension (contributory) on 10 November 2011. For persons who reach pension age on or after 6 April 2012, social welfare legislation stipulates that a minimum of 520 full-rate paid contributions are required to qualify for State pension (contributory). Credits cannot be used to satisfy this condition. 520 full-rate contributions equate to 10 years of full-rate insurable employment.

The person’s social insurance record has been fully investigated. According to the records of my Department, they have 458 paid full-rate social insurance contributions. Their self-employment contributions were paid after the person reached 66 and therefore under social welfare legislation are not reckonable for pension purposes. A Social Welfare Inspector did not find proof of employment in 1963 to recommend the award of contributions for any part of that year. Since the person’s contributions fall short of the required 520 paid full-rate contributions to qualify for State pension (contributory), their claim was disallowed.

According to the records of my Department, the person concerned was in receipt of Carer's Allowance from 1 November 1990 to 29 July 2002. Under social welfare legislation, credits shall not be awarded where there is a two-year gap between these credits and the person’s last paid full-rate contribution. Since the person concerned does not have a record of paid contributions from insurable employment prior to 1990, there is no entitlement to credits.

Where credits are reckonable, they can only be included in calculation of a person’s pension entitlement once the minimum requirement of 520 full-rate paid contributions is satisfied. If the person concerned considers they have additional contributions from employment that have not been recorded, it is open to them to forward documentary evidence of the missing periods of employment to my Department and their pension entitlement will be reviewed.

The person concerned may wish to consider applying for the State pension (non-contributory). This is a means-tested, residency-based payment for people of pension age. 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.

I hope this clarifies the position for the Deputy.

Gary Gannon (Dublin Central, Social Democrats)
Link to this: Individually | In context | Oireachtas source

879. To ask the Minister for Employment Affairs and Social Protection if she will provide information on the planned membership of the Commission on Pensions; if the Commission will be independent and reflect all sections of society; and if she will make a statement on the matter. [32872/20]

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

The public policy and social issues in relation to funding a sustainable and adequate State pension system are complex. The Programme for Government commits that a Commission on Pensions will be established to examine a range of issues including contributions, calculation methods, sustainability, eligibility and intergenerational fairness.

I am pleased to announce that the Government today approved the establishment of this Commission. Its Terms of Reference and membership have been published on the Department's website at www.gov.ie/dsp. It is imperative that the Commission has the required expertise to progress its work and is independent in its deliberations and this is reflected in its membership with subject matter experts and stakeholder representatives.

As part of its work and deliberations, the Commission will seek views from other recognised experts and representative/advocacy groups by inviting submissions and/or presentations.

As set out in the Programme for Government, the Commission will report to Government by June of next year and the Government will take action having regard to the recommendations of the Commission within 6 months of receiving that report.

In the meantime, I was pleased to announce on Budget Day that the planned increase in the State pension age next year will be deferred, in line with our Programme for Government commitment, and it will remain at 66 years pending the report of the Commission on Pensions. I will introduce legislation later this year to do that.

While this Government is acutely conscious of the need to consider the sustainability of the State’s finances, this is not the only consideration when thinking of the State pension age. 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.