Paul McAuliffe (Dublin North West, Fianna Fail)
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99. To ask the Minister for Employment Affairs and Social Protection the reason those paying the D stamp and who were recruited prior to 1995 are not eligible for the State pension (contributory); her plans to amend the issue; and if she will make a statement on the matter. [15184/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Civil and public sector employees recruited prior to 6 April 1995 pay social insurance contributions at modified rates under classes B, C and D. All civil and public servants recruited from 6 April 1995 pay social insurance at the standard class A rate.

Prior to 6 April 1995, civil and public servants did not have access to the full range of social insurance benefits as their terms of employment protected them against the main contingencies of illness and old age, and the risk of unemployment was not considered a factor due to the nature of their employment.

Consequently, such contributors pay less in social insurance contributions in return for fewer social insurance benefits. For example, class D contributors currently pay a contribution at the rate of 0.9% on their weekly earnings up to €1,443 and 4% on weekly earnings over that amount, and their employers pay a contribution of 2.35% on all employee earnings.

In contrast, class A contributors pay a contribution of 4% on their weekly earnings and their employers pay a contribution of 8.8% where employees’ weekly earnings are €441 or less and 11.05% where their employees’ weekly earnings exceed €441. Class A contributors have access to the full range of social insurance benefits.

While the modified rates of social insurance under classes B, C and D do not give entitlement to the State pension (contributory), such contributors may, subject to a means test, qualify for the State pension (non-contributory).

Social insurance contributions are made in accordance with the legislation and the employment terms and conditions in force at the time they are made and eligibility for social insurance benefits flow from that. I have no plans to extend the State Pension (Contributory) Pension to modified contributors.

I trust this clarifies the matter for the Deputy.

Alan Dillon (Mayo, Fine Gael)
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100. To ask the Minister for Employment Affairs and Social Protection if she will review the weekly rate of all State pensions to include the full €12 increase introduced in Budget 2023 so people on a reduced pension rate can receive the full increase given the cost-of-living crisis; and if she will make a statement on the matter. [15198/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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In September, I announced the largest social protection Budget package in the history of the State. The Social Protection measures announced in the Budget amounted to almost €2.2 billion.

From 1^stJanuary 2023, the maximum weekly rate of the State Pension increased by €12 with proportional increases for qualified adults and people on reduced rates of payment. In the case of the State Pension (Contributory), the rate of payment is based on the number of yearly average PRSI contributions; whereas the Non-Contributory State Pension is means-tested, so reduced rates of payment may be awarded as appropriate.

I note your query regarding allocation of the €12 increase across all pensions irrespective of whether a person is in receipt of a full pension. Reduced rate or pro-rata pensions are paid at a fixed percentage of the full rate payment, for instance, a person receiving a payment of 75% of the maximum rate receives 75% of any Budget increase applied to the full rate pension.

Providing the full budgetary increase to those with reduced payments would erode the differentials which exist, and which are intended to reflect the level of contribution, which a person has made to the Social Insurance Fund. It would also mean that those on reduced rate pensions would, on an ongoing basis, benefit disproportionately from Budget increases.

Any changes to the rate of pensions paid would need to be examined in an overall budgetary context.

I trust this clarifies the matter for the Deputy.