Written answers

Wednesday, 15 December 2021

Department of Employment Affairs and Social Protection

Pension Provisions

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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144. To ask the Minister for Employment Affairs and Social Protection if advice will be provided in relation to a matter raised in correspondence by a person (details supplied) regarding pension entitlements; and if she will make a statement on the matter. [62317/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The person concerned reached pension age on 17 September 2012 and was awarded a standard State pension (contributory) at 40% of the maximum rate, based on the information available. They were notified in writing of this decision on 31 October 2012. This rate of pension was based on a yearly average calculation of 14, based on the person’s social insurance record of 661 qualifying paid and credited contributions from their date of entry into insurable employment on 15 April 1966 to end-December 2011, the end of the tax year preceding their 66th birthday.

The person concerned requested a review of their contribution record, and additional contributions were awarded. State pension (contributory) at 65% of the maximum rate was then awarded from the person’s 66th birthday. They were notified in writing of this revised decision on 25 November 2013. The person’s revised yearly average calculation places them in the 15-19 rate band, based on the person’s social insurance record of 693 qualifying paid and credited contributions from their date of entry into employment to end-December 2011.

In January 2018, the Government announced plans to review the rates of all State pension (contributory) recipients with a date of birth on or after 1 September 1946, and thus affected by 2012 budget changes. All eligible persons could have their pension entitlements assessed using the alternative 'Aggregated Contributions Method’, also known as the interim Total Contributions Approach, which provides for up to 20 years of HomeCaring Periods (1,040 HCP) in the calculation of pension entitlement for those who took time out of the workplace for parenting children under age 12 or individuals who needed increased levels of care. Pension entitlement is calculated as a percentage of the maximum rate. In order to receive a maximum rate State pension (contributory), applicants must have a combined total of at least 2,080 reckonable contributions, credits and HomeCaring Periods up to their 66th birthday. The person concerned was invited to take part in this review on 9 January 2019.

The person’s rate of State pension (contributory) entitlement was calculated using this approach. While a total of 1,384 Home Caring Periods were awarded to them, under social welfare legislation, a maximum of 1,040 Home Caring Periods can be used in this calculation. The person concerned was awarded State pension (contributory) at 82.40% of the maximum rate, backdated to 30 March 2018. They were informed in writing of the outcome of this pension review on 6 June 2019, and, as in their previous pension decisions, were afforded the right of review and/or appeal.

The person concerned is in receipt of the most financially beneficial rate of State pension (contributory) commensurate with their social insurance record. It should be noted that, had they retired at 65 years of age, they would not have qualified for State pension (transition) at that time, as a yearly average of 24 was required.

I hope this clarifies the position for the Deputy.

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