Cathal Crowe (Clare, Fianna Fail)
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149. To ask the Minister for Employment Affairs and Social Protection the status of the commitment to benchmark pension rates in the Roadmap for Social Inclusion 2020-2025; and if she will make a statement on the matter. [24684/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Following publication of the Roadmap for Pensions Reform in 2018, which included a recommendation to benchmark and index State Pension rates, my Department undertook a consultation process in 2019 with interested stakeholders to hear views on possible approaches to the indexation of pensions, and social welfare rates more generally. This process also included discussion with representatives of the community and voluntary sector at the Pre-Budget Forum in July 2019, as well as at bilateral meetings with stakeholders.

The outcome of these discussions was considered, and in consultation with the Department of Public Expenditure and Reform, the Department has developed proposals for setting a formal benchmark for State Pension Contributory payments and the indexation of future changes in pension rates of payment.

The approach developed, known as the “smoothed earnings” approach, aims to ensure that the relative value of welfare payments compared to market earnings would be maintained over time and that, in the short-term, the real value, or purchasing power, of these payments would be protected.

This commitment was reiterated in the Roadmap for Social Inclusion which also outlined the potential approach for benchmarking and indexing pension rates. The Pensions Commission report also examined the issue of benchmarking pension rates and has endorsed implementation of the “smoothed earnings” approach.

The recommendations of the Pensions Commission are being considered in depth and I will bringing forward a recommended response and implementation plan for Government’s consideration in the coming weeks.

I trust this clarifies matters for the Deputy.