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Dáil
‹ Questions on Promised Legislation

Contributory pension calculation review

Summary

Deputy Sean Fleming raises the unfairness of pension calculations for people, especially women, who took career breaks for family duties. The Minister says the same issue was raised earlier, an actuarial review is pending, and a total contributions model is the goal.

Seán Fleming Deputy Sean Fleming Fianna Fáil

I would like to ask the Taoiseach when the Department of Social Protection will introduce legislation to deal with the unfair situation where a person's contributory State pension is based on his or her average contribution from the time he or she entered the workforce. In particular, the Minister will be aware that many took time out during their working career to look after family duties. In practically all of these cases, these were women. They would have not paid PRSI contributions during that period and as a result, their average contributions over their entire adult life are lower than they otherwise would have been resulting in them receiving a lower State pension than they would otherwise have received. When will this discrimination, primarily against women, be ended?

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I am not sure if Deputy Fleming was here but Deputy Bríd Smith brought up exactly the same question a few minutes ago. Unfortunately, the answer is exactly the same. We are waiting on an actuarial review on the Social Insurance Fund that will come back to us probably by quarter three. The model we hope to move to is a total contributions model. We will be moving towards it as quickly as we can. The expected date at present is 2020, which I accept is no solace for the amount of women that the Deputy is talking about, but if we can do it faster, we will.

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