A series of landmark reforms were introduced to the State Pension system in response to the Pensions Commission’s recommendations and represent the biggest ever structural reform of the Irish State Pension system. One of the reforms agreed by Government was a phased transition over 10 years to Total Contributions Approach (TCA) and the abolition of the Yearly Average (YA) approach. The ten-year phased transition is to avoid a ‘cliff edge’ effect and to soften the impact of the move on the first cohorts.
During this transition period, individual pension rates will be assessed under TCA. Where a person does not qualify for 100% TCA, their entitlement is assessed using a combined rate approach. In the case of the person concerned, the combined rate is 80% YA and 20% TCA, giving them entitlement to €242.00 per week which is 80.83% of the maximum rate.
Where a person qualifies for less than the maximum rate, they may instead qualify the means-tested State Pension non-contributory which is a means-tested payment with a maximum payment of 95% of the SPC.
I hope this clarifies the matter for the Deputy.
