Seán Haughey (Dublin Bay North, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1028. To ask the Minister for Employment Affairs and Social Protection the current position of employees who are obliged to retire from their employment at the age of 65 years as regards eligibility for a State pension; the benefits available to these ex-workers between the age of 65 and 66 years; and if she will make a statement on the matter. [38292/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In February 2021, I introduced the "Benefit Payment for 65 year olds" in line with the Programme for Government commitment, to provide a benefit payment for people who are aged 65 and who are required to retire, or who chose to retire, without a requirement to sign on, engage in activation measures or be available for and genuinely seeking work. This new payment was designed specifically to bridge the gap for people who retire from employment or self-employment at 65 years of age but who do not qualify for the State Pension until age 66.

Last year, in response to the recommendations from the Report on Commission on Pensions, the Government agreed that the Department of Enterprise, Trade and Employment would introduce measures that allow, but do not compel, an employee to stay in employment until the State Pension age. The implementation of these measures is in process.

I hope this clarifies the matter for the Deputy.

Bríd Smith (Dublin South Central, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

1029. To ask the Minister for Employment Affairs and Social Protection if she can clarify her plans in relation to the proposed introduction of the total contributions approach (TCA) method of assessment for the State pension (contributory) as the only method of assessing an individual for the State pension (contributory); if she will consider retaining indefinitely the use of both the average assessment method and the TCA to assess D class (PRSI) public service workers for the State pension (contributory) in the interests of not disincentivising the valuable contribution which retired D class public service workers can make to the Irish economy and society as part-time workers in other sectors up to the age of 66; and if she will make a statement on the matter. [38370/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

One of the landmark reforms to the State Pension system that I announced last September is a ten-year phased transition to the Total Contributions Approach and the abolition of the Yearly Average method, as recommended by the independent Pensions Commission following its in-depth analysis of the State pension system.

This fairer system, which removes existing anomalies with the Yearly Averaging system, will calculate pension payments based on the number of social insurance contributions made by a person over his or her working life, with significant pension credits granted to people who have taken time out of the workplace for caring responsibilities.

During a transition period, individual pension rates will be based on the best of the Total Contributions Approach, or a rate based on a mix of the Yearly Average and Total Contributions Approaches, with the proportion accounted for by Yearly Average reducing from 90% to zero over 10 years and the proportion accounted for by the Total Contributions Approach increasing commensurately. Officials in my Department are currently working on the legislation and systems to support the introduction of this change, which will be effective from 2025.

Those with mixed-rate contributions, such as those who have paid at class D and class A rates over the course of their working career, will see their entitlement to the State Pension (Contributory) evaluated in the same manner. Their entitlement to an occupational pension through their work in the public service will remain unaffected.

Where a person reaches State Pension age and does not satisfy the conditions to qualify for a SPC or qualifies for less than the maximum rate, they may instead qualify for one of the following:

• The means-tested State Pension (Non-Contributory) (SPNC) which is a means-tested payment with a maximum payment of 95% of the SPC; or
• An increase for a qualified adult, amounting up to 90% of a full rate SPC pension where their spouse has a contributory pension; or
• Where their spouse/civil partner is deceased, a widow's/widower's/civil partner's contributory pension, which they may claim either based on their spouse's or their own social insurance record. The qualifying conditions for this require fewer contributions paid (260) than the SPC and the current maximum personal rate for those aged 66 or over is €265.30, i.e., the same as the maximum rate of the SPC, with allowances (e.g., the Living Alone Increase) payable where applicable.