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Dáil
‹ Questions on Promised Legislation

Partial pension correction

Summary

Deputy Moynihan asked how the Government plans to address reduced or partial pensions for people who spent years caring at home. The Minister said pension increases exceed the programme commitment and officials are reviewing individual records in this complex area.

I want to ask the Minister about the commitment in the programme for Government to improve pensions. I refer specifically to those who are on partial pensions or reduced contributory pensions because they were outside the PRSI network, often caring for children or the elderly at home. What is the position or what plan has the Minister for correcting that imbalance? These people are falling behind every day because they took on the role of caring for their children or the elderly at home.

Comment on this

The programme for Government contains a commitment to increase the State pension, both contributory and non-contributory, by more than the rate of inflation. We have done much more than that in this budget in view of the fact that inflation is minimal. No matter how modest the increase may be, it more than fulfils the commitment made in the programme for Government with regard to increasing pensions.

On the more substantive question the Deputy raises, as he will be aware, this is a complex area. My officials are now going through individual pension records of hundreds of thousands of people, trying to work out the impact of any change we might make because any change to the pension regime could result in significant costs for the Exchequer which we might not be able to bear, and also could create winners and losers. One needs to know, if one intends to make a change, how many winners and losers there will be and the extent to which they will either gain or lose. The move will be towards a total contributions approach. It will be not when one made contributions but how many one made. It will also have to take account of the fact that many, particular women, have to take time out of the workforce to look after children or relatives. We will need a major reform in this regard and a transition period, and new legislation, and that is unlikely to happen in the coming year.

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