Gary Gannon (Dublin Central, Social Democrats)
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539. To ask the Minister for Employment Affairs and Social Protection her views on whether pension reforms require a specific gender perspective, given that only 16% of women receive the full State pension (contributory); her further views on whether this perspective and expertise is included in the newly announced membership of the pension committee; if so, the specific members in this regard; and if she will make a statement on the matter. [35441/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I am pleased that I secured approval from Government last week to establish the Commission on Pensions, in fulfilment of the Programme for Government commitment.

On Budget Day, I announced that the planned increase in the State pension age from January of next year will be deferred, in line with our Programme for Government commitment. In this regard, it will remain at 66 years pending the report of the Pensions Commission and I will introduce legislation later this year to give effect to this.

I am keenly aware of the gender issues related to pensions. In this regard, the Pensions Council, a statutory body set up to advise my office on matters related to pensions, funded a research programme with the ESRI on gender and pensions. While this research, published last year, found a 35% gender gap in overall pension payments in Ireland, there was no evidence of any gap stemming from the State pension system - the gap arises in occupational and personal pensions.

In this regard, the Government committed in the Programme for Government to introduce an automatic enrolment retirement saving system for workers, with the freedom of choice to opt-out. This will work to increase the low levels of supplementary pension coverage for workers in the private sector, an issue that particularly impacts women.

The introduction of the interim Total Contributions Approach to calculating the rate of the State Pension Contributory (SPC) has also had a significant impact on increasing the rate of payment for women. In particular, the introduction of HomeCaring periods recognises the impact that time out of labour force for caring purposes can have on the rate of pension payable. Unlike the Homemaker's scheme, HomeCaring periods can apply to periods before 1994. This approach has resulted in a significant increase in the pension payment rates for women, as women predominantly take on caring responsibilities.

In this regard, at end-January 2019, prior to the implementation of an interim 'Total Contributions Approach (TCA)', 37.4% of all women in receipt of SPC received payment at the maximum rate. Since the introduction of the interim TCA arrangements, by end September 2020, 48.1% of all women in receipt of SPC received the maximum rate. This is a significant improvement over a relatively short time period.

The Commission's Terms of Reference includes the examination of sustainability and eligibility issues with the State Pension and the Social Insurance Fund. More broadly, it will also consider the issue of retirement ages in employment contracts and consider how the pension system can further accommodate carers.

The membership of the Commission, approved by Government, reflects the need to have subject matter experts to deal with the complex social and public policy issues arising in pensions, as well as stakeholder representation which will keep the work of the Commission grounded. This includes representation of workers, employers, civil society, academics and those with technical and policy expertise. It will be chaired by Ms Josephine Feehily. More details, including the Terms of Reference and membership details, are available on the Department's website at: .

The Commission has strong female representation in its membership and I am pleased that the majority of confirmed members - 5 out of 9 - are women. I am fully confident that the Commission, with its gender-balanced membership and extensive experience of social and public policy, has the necessary perspective and expertise to consider the potential impacts of pensions reform options on relevant affected groups, such as women, workers, and older people.

The Commission will also engage with a range of key stakeholders to ensure that it has a genuine understanding of not only the fiscal sustainability challenges involved, but the social sustainability challenges of implementing potential policy reforms. The exact mechanisms for this engagement will be shaped by the Chair and by Commission members.

As you will be aware, 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.