Written answers

Monday, 9 September 2024

Department of Employment Affairs and Social Protection

State Pensions

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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911.To ask the Minister for Employment Affairs and Social Protection if the eligibility for State pension in the case of a person (details supplied), who is seeking to have his level of payment increased, will be reviewed; and if she will make a statement on the matter.[33950/24]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The person concerned reached pension age on 9 May 2019. An application for State Pension (contributory) was received in my department on 12 July 2022.

Currently all applicants for state pension (contributory) have their entitlement assessed under two separate criteria, the yearly average (YA) method and the total contributions approach (TCA).

Under the YA method all paid and credited contributions are divided by time spent in the social insurance system to give an average of Social Insurance contributions per year with payments made on a banded basis. A yearly average of 48 contributions is required to get the maximum rate of pension. The Department records show that the date of entry into insurable employment for the person concerned was 1970. Therefore all reckonable contributions and credits from 1970 to the end of the last complete tax year before the person concerned turned 66 were included in the calculation. The total reckonable contributions and credits from 1970 to 2019 was 694. This gives a yearly average of 14 giving entitlement to just over 47% of the maximum rate of state pension (contributory)

The TCA was introduced in January 2018. 2080 contributions (equivalent to 40 years) are required for a full rate payment with pro-rata payments for those who have the minimum required 520 paid contributions, but less than 2080. The person concerned has a total of 713 reckonable contributions up to age 66 giving an entitlement to 34.28% of the maximum rate of state pension (contributory).

The State Pension (contributory) was awarded from 10 January 2022 using the YA method. This is the most financially beneficial rate of State pension (contributory) commensurate with their social insurance record. If they consider that they have additional contributions or credits that have not been recorded, it is open to them to forward documentary evidence to my department and their pension entitlement can be reviewed.

In September 2022, the person concerned appealed the rate of payment and the date of award to the Social Welfare Appeals Office. This decision of my department was upheld in February 2023.

I hope this clarifies the position for the Deputy.

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