The person concerned reached pension age on 30 March 2017.
State pension (contributory) applications are assessed under the 'yearly average' method and the 'total contributions approach', with the most beneficial rate paid.
The person concerned was examined using the 'yearly average' method. They had a total of 827 reckonable contributions and 805 credits from their date of entry into insurable employment in 1966 to 2017 which equates to a yearly average of 32 contributions. This gave entitlement to a reduced state pension (contributory) from 30 March 2017, equivalent to 90% of the maximum rate. A yearly average of 48 contributions is required to receive the maximum rate state pension (contributory).
In January 2018, the Government agreed a new “total contributions approach” (TCA) for state pension (contributory) which can include up to 20 years of home caring periods. Unlike the homemakers scheme, this applies to periods both before and after 1994. This can benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. The TCA ensures that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines a final pension outcome, and it also acknowledges, the contribution made by home carers in the period before 1994.
Entitlement to the state pension (contributory) using the total contributions approach was assessed. A total of 827 reckonable contributions combined with the maximum permissible number of home caring periods and reckonable credits of 1,040, gave a total of 1,867. This gave entitlement to 89.76% of the maximum rate state pension (contributory).
As the person concerned was in receipt of a pension, based on the yearly average method and payable at a higher rate, the person concerned remained on this pension.
I have arranged for a copy of their social insurance record to issue along with a detailed explanatory note to assist in understanding their record, and information on how to calculate entitlement to state pension (contributory). If they consider that there are additional contributions or credits that have not been recorded, it is open to them to forward documentary evidence to Social Welfare Services, College Road, Sligo, F91 T384.
I introduced a number of reforms to the state pension (contributory) including a provision for people who have been caring for incapacitated dependents for over 20 years (1040 weeks). If the person concerned has been caring for incapacitated dependents for over 20 years, they can apply for long-term carers contributions (LTCC). If the criteria are met, the equivalent of paid contributions may be attributed to cover gaps in their contribution record. The periods of care-giving do not need to be consecutive or for the same person.
The quickest way to apply for long-term carers contributions is online at MyWelfare.ie if the person concerned has a verified MyGovID account. Further information is available on the Government website at gov.ie/pension.
Where a person reaches state pension age and does not satisfy the conditions to qualify for state pension (contributory) or qualifies for less than the maximum rate, they may instead qualify for the state pension (non-contributory) which is a means-tested payment with a maximum payment €266.00 which is approximately 96% of the maximum rate of state pension (contributory)
I hope this clarifies the position for the Deputy.