Written answers

Tuesday, 1 December 2020

Department of Employment Affairs and Social Protection

Pensions Reform

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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465. To ask the Minister for Employment Affairs and Social Protection her views on the suitability of the rates and eligibility criteria attached to the widow's, widower's or surviving civil partner's (contributory) pension; the date that the latest review of same was carried out; and if she will make a statement on the matter. [39612/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The maximum personal weekly rates for the Widow's, Widower's or Surviving Civil Partner's Contributory Pension are €248.30 for those aged 66 and over and €208.50 for those under 66 years of age. It is a weekly payment to the husband, wife or civil partner of a deceased person. Increases for qualified children are also payable at a rate of €36 (for children under the age of 12) or €40 (for children over the age of 12). The Living Alone allowance the Island allowance and the over 80 increase are also payable depending on the person's circumstances. As with all payments made by my Department, the rates are kept under constant review and are considered in the context of the annual Budget.

Unlike other social insurance schemes, entitlement is based on either the claimant’s or the deceased partner’s social insurance contributions. Virtually all social insurance contributions count towards this pension, including contributions paid by the self-employed and by pre-1995 public servants. To qualify, either the claimant or their deceased partner must have a total of 260 contributions (five years contributions). This is half the number needed to qualify for the State Pension (Contributory).

The Government approved the establishment of the Commission on Pensions earlier this month, in fulfilment of a Programme for Government commitment. The Commission will examine sustainability and eligibility issues in respect of State pension arrangements and will outline options for the Government to address issues such as qualifying age, contribution rates, total contributions and eligibility requirements. In line with the Programme for Government, the Commission will report to me on its work, findings, options and recommendations by 30th June 2021. The Government intends to take action having regard to the recommendations of the Commission within six months.

The Government is acutely conscious of the need to consider the sustainability of the State’s finances. However, this is not the only consideration when thinking of the State pension system. It is important to ensure that the State Pension system continues to provide adequate support to people in retirement over the long term. The system, including the Widow's, Widower's or Surviving Civil Partner's Contributory Pension, is extremely effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case.

I hope this clarifies the matter for the Deputy.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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466. To ask the Minister for Employment Affairs and Social Protection if a review of the suitability of the rates and the eligibility criteria attached to the widow's, widower's or surviving civil partner's (contributory) pension will be included in the work programme of the newly established Commission on Pensions; and if she will make a statement on the matter. [39614/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Government approved the establishment of the Commission on Pensions last month, in fulfilment of a Programme for Government commitment. The Commission will examine sustainability and eligibility issues in respect of State pension arrangements and will outline options for the Government to address issues such as qualifying age, contribution rates, total contributions and eligibility requirements. These issues will be considered from a perspective of fiscal and social sustainability, and intergenerational fairness. I was delighted to attend the Commission's virtual inaugural meeting last week.

The Commission's Terms of Reference specifically mentions the State Pension Contributory and the State Pension Non Contributory schemes. While the Terms of Reference do not explicitly mention the Widow/er's and Surviving Civil Partner's Contributory Pension, if the Commission wishes to consider this scheme in the context of its remit to examine sustainability and eligibility issues related to the State Pension arrangements and the Social Insurance Fund, it is open to it to do so. The full Terms of Reference are available here:

In line with the Programme for Government, the Commission will report to me on its work, findings, options and recommendations by 30th June 2021. The Government intends to take action having regard to the recommendations of the Commission within six months.

The Government is acutely conscious of the need to consider the sustainability of the State’s finances. However, this is not the only consideration when thinking of the State pension system. It is important to ensure that the State Pension system continues to provide adequate support to pensioners over the long term. The system, including the Widow's, Widower's or Surviving Civil Partner's Contributory Pension, is extremely effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case.

I hope this clarifies the matter for the Deputy.

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