Brendan Smith (Cavan-Monaghan, Fianna Fail)
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149. To ask the Minister for Employment Affairs and Social Protection the status of the Total Contributions Approach 2012 review for those effected by the 2012 rate band changes; and if she will make a statement on the matter. [35334/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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A policy to introduce the Total Contributions Approach (TCA) to pensions calculation was adopted by Government in the National Pensions Framework in 2010, as was the decision to base the entitlements of all new pensioners on this approach from around 2020.

In advance of this, in January 2018, the Government agreed to a proposal that allows pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated using an interim “Total Contributions Approach” (TCA) which includes up to 20 years of a new HomeCaring periods.

The provision for the HomeCaring Periods Scheme fundamentally changed the entitlement of many who spent time out of the workforce caring for others. It, for the first time, acknowledged home caring periods prior to 1994.

Interim TCA provides for up to 20 years of home caring periods to be considered. Those who have a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of credits/homecaring periods, qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme.

Work began on examining the social insurance records of over 94,000 pensioners in September 2018. Where these reviews resulted in an increase in the pensioner’s rate of payment, the increase was backdated to 30 March 2018 or the pensioners 66th birthday, as appropriate. As at the end of October 2019, with the project completed, 94,258 reviews had been finalised; of these, 53,092 (56%) were women and 41,166 (44%) were men. Of the 53,092 women reviewed 28,528 (54%) received an increase while the rest remained on their existing rate. Of the 41,166 men reviewed, 9,956 (24%) received an increase and the remainder continued to receive their same rate of payment. No pensioner had their pension payment reduced as part of this review.

As part of the Programme for Government, a Commission on Pensions was set up to look at sustainability and eligibility issues with the State Pension and the Social Insurance Fund. More broadly, it is also considering the issue of retirement ages in employment contracts and how the pension system can further accommodate carers, who are predominantly women. The Commission will outline options for the Government to address issues such as qualifying age, contribution rates, total contributions and eligibility requirements. The Commission is due to report on its findings in the near future.

I hope this clarifies the matter for the Deputy.