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The government will spend €40 million closing the 'pensions gap'

The people impacted, mainly women, lose out on around €30 per week under the measures.

THE PENSION ANOMALY which has seen nearly 40,000 pensioners who spent time working in the home paid less than others will be addressed.

Social Protection Minister Regina Doherty announced today that €40 million will be spent to bring those who lost out on money due to band changes in 2012 into line with others.

The people impacted, mainly women, lose out on around €30 per week under the measures.

A new Total Contribution Approach (TCA) will be available from 30 March to pensioners affected by the 2012 changes, and will include up to 20 years of a new home caring credit. The scheme will see increase for those, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role.

Doherty said that the 40,000 people affected will be contacted in the autumn and offered the chance to move to TCA from the state pension system – but all pensioners will be allowed stay on the rate which leaves them best off. Those who have an absence in their records will be asked to sign a statutory declaration.

Pensioners do not need to contact the Department or do anything else until written to by the Department nearer the end of the year.

“In recent months, many people expressed concern about their pension rates, which were affected by rate band changes in 2012. We listened and we worked on a solution.”

The scheme will cost around €40 million this year and money owed will be paid in a lump sum to pensioners in the first quarter of next year.

However, Doherty said that it was not legislatively possible to pay money that people had lost in the years since 2012. She said that because legislation could not be retroactive, the payments could only be considered from the end of March.

The Department uses the example of a 69-year-old named Anne. In their example, she was born in 1948 and worked from 16 to 22. She then had three children and returned to the workforce in 1996 and paid PRSI until 2013.

Under the current system, her pension is paid on the years she made PRSI contributions and comes out with €202.80 a week.

With the new system, she gets 18 years of PRSI credits for the time spent raising her children and comes out with €238.30 a week.

The TCA will replace the “yearly average” approach for all new State Pension (contributory) applicants from around 2020 onwards.

Justin Moran, Head of Advocacy and Communications with Age Action, said: “We’re disappointed that the Government has decided not to reverse the 2012 pension cuts, which is the simplest way to fix this injustice and deliver a fair State Pension.

“But we appreciate that Minister Doherty’s solution can make a very real difference in the incomes of thousands of men and women who were punished by the pension system for rearing their families.”

Explainer: Why has a big post-Budget row erupted over women’s State pensions?

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    Mute Maria Hickey-Fagan
    Favourite Maria Hickey-Fagan
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    Jan 27th 2018, 10:40 PM

    Here’s what I remember. January has been about 79 days long

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    Mute fibradshaw
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    Jan 27th 2018, 11:09 PM

    @Maria Hickey-Fagan:

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    Mute David Dickson
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    Jan 28th 2018, 3:31 AM

    @fibradshaw:

    14
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    Mute Deborah Behan
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    Jan 28th 2018, 2:13 PM

    @Maria Hickey-Fagan: fun fact: this January is actually longer than the entirety of 2017.

    5
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    Mute John Doe
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    Jan 27th 2018, 10:04 PM

    I hope Leo’s bank overcharge him… see if it takes over 10 yrs to get his money back, 3 or more of which are since the “errors” were discovered. (Still waiting btw)

    65
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    Mute Patabake Kennedy
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    Jan 27th 2018, 10:12 PM

    My pocket remembers that it never handed out as much money for coal as it did, so far, this year.

    52
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    Mute Honeybee
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    Jan 27th 2018, 10:38 PM

    @Patabake Kennedy: You and me both Patacake, gas bill from 2nd Nov to15th January 478 euro, damn vat, standing charges and public service charges levy, it was freezing through Christmas, 100 euro in taxes for trying to stay warm.

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    Mute Patabake Kennedy
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    Jan 28th 2018, 1:19 AM

    @Honeybee: Ouch, and the rest of the winter to come. those auld levies don’t help either. Ah well, we are used to it by now, maybe the spring might bring a bit of relief.

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    Mute Drew P. Baulsach
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    Jan 28th 2018, 1:41 AM

    @Honeybee: its so cold I saw a politician with his hands in his own pocket!

    23
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    Mute David Dickson
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    Jan 28th 2018, 3:37 AM

    @Drew P. Baulsach: you are lucky to live to tell such a tale.

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    Mute Deborah Behan
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    Jan 28th 2018, 2:25 PM

    @Honeybee: feeling your pain. ESB bill just in at €392 for two months because of crap storage heaters on top of my extortionate rent. Ah Leo’s republic of opportunities.

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    Mute Honeybee
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    Jan 28th 2018, 3:20 PM

    @Deborah Behan: Painful Deborah, now I know what my own electric bill will look like when it falls due in a fortnight, thank God the days are getting brighter and hopefully a little warmer so we can get a bit of respite from chronic charges for necessities,it’s bad enough trying to keep bills reasonable without the added taxes on bills , government profiting on people struggling and no amount of carbon taxes etc will make a blind bit of difference, doesn’t seem to matter which form of heating we have, it’s all too expensive, my elderly neighbours just ordered an oil fill, they said normally they would have lasted to February/March but weather has been so cold they have used it up.

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    Mute Batster
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    Jan 27th 2018, 9:23 PM

    Unfortunately all of it

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    Mute Maggie O'Connor
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    Jan 27th 2018, 10:02 PM

    9/10

    13
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    Mute Deborah Behan
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    Jan 28th 2018, 2:27 PM

    @Maggie O’Connor: same. Goes to show you how broke I’ve been that I have to actually pay attention!

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    Mute Tony O'Regan
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    Jan 28th 2018, 8:09 AM

    So Leo is the only Irish person I know of who has a 40 year mortgage!

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    Mute Stipe Miocic
    Favourite Stipe Miocic
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    Jan 27th 2018, 11:56 PM

    7. Flipping Good

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    Mute Fiona Fitzgerald
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    Jan 27th 2018, 10:13 PM

    8/10.

    11
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    Mute Siobhán Ni Mhurchú
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    Jan 27th 2018, 11:05 PM

    Baaaaad

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    Mute Teresa Ryan
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    Jan 28th 2018, 11:37 AM

    Bugger 9/10. I accidently hit the wrong on the Dolores O’Riordan question

    Damn.

    7
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