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Almost 1,000 pensioners receive increased payments in first wave
of contributory state pension reviews – Minister David Stanton
Cork East Fine Gael TD and Minister of State at the
Department of Justice, David Stanton, has welcomed
confirmation that the Government has begun the first
review of recipients of the State Pension (Contribu-
tory).

The review of the State Pension (Contributory), an-
nounced last year by the Government, applies to
current pensioners whose rate of entitlement was as-
sessed according to pension rate band changes which
were introduced in 2012. The review will provide for
an alternative Total Contributions Approach (TCA) re-
calculation for contributory pensioners born on or after
the 1st September 1946. New Home Caring periods will also take account of time spent
out of the workplace for parenting or caring duties.

The new TCA marks a move away from the old ‘averaging rule’ system whereby a per-
son’s Pay Related Social Insurance (PRSI) contributions were added up and then aver-
aged over the number of years from the date of their first PRSI contribution to the end
of the tax year before reaching pension age. Under the new calculation method, pension
entitlement will be based on the total number of contributions a person has made over
their working career only, the maximum length of which, for calculation purposes, will be
40 years.
Speaking after the first reviews had been conducted; Minister Stanton said “1,138 pen-
sions reviews have been completed to date with 86% (978) of those reviewed set to re-
ceive an increase in their payment under the new approach. The remainder will continue
on their existing rate. It is important to stress that no existing pensioner will be worse off
financially.

“The Minister for Employment Affairs and Social Protection, Regina Doherty TD, has con-
firmed that her department is examining the pension payments of approximately 90,000
pensioners nationwide who reached pension age on or after the 1st September 2012.
Reviews will continue until all identified pensioners receive an outcome in writing.
“Given the number of reviews involved, the process is expected to continue for a number
of months but the Department is committed to doing this as speedily as possible and has
recruited additional staff to do so.
“Where due, increased payments will be made without delay and will include arrears back
to 30 March 2018 or the pensioner’s 66th birthday if it occurred after this date. Where
pension rates do not increase as a result of this review, the existing rate of entitlement
will continue to be paid”, concluded Minister Stanton.
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