Written answers

Tuesday, 22 November 2022

Department of Employment Affairs and Social Protection

Pension Provisions

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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453. To ask the Minister for Employment Affairs and Social Protection if she will detail the considerations given by her Department with regard to individuals who may see a reduction in their pension under proposed changes; and if she will make a statement on the matter. [57639/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I announced a series of landmark reforms to the State Pension system on 20th September 2022. The measures, which were approved by Government, are in response to the Pensions Commission’s recommendations. The set of measures represent the biggest ever structural reform of the Irish State Pension system. The reform measures include enhanced pension provision for long-term carers of incapacitated dependents, introduction of flexible State Pension ages, a roadmap for gradual increases to PRSI contribution rates and a 10 year phased transition to the Total Contribution Approach. My officials are currently working to implement the reforms, including the drafting of legislation and development of administrative and IT systems as necessary. The implementation of these reforms will be subject to ongoing gender, poverty and equality proofing.

In addition, the State Pension (Non-Contributory) and the Increase for Qualified Adult (IQA) payment will continue to provide a safety net to pensioners with limited means. If a person does not qualify for the maximum payment rate for the State Pension (Contributory), he or she may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is over 95% of the rate of the State Pension (Contributory). Alternatively, the IQA is paid, generally, where a pensioner has an adult dependent who does not have enough contributions to claim a maximum rate State Pension (Contributory) in his or her own right. The payment rate for the IQA is up to 90% of a full contributory pension. The most advantageous payment for a pensioner will depend upon their individual circumstances.

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. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.

I hope this clarifies the matter for the Deputy.

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