Laois TD Sean Fleming has welcomed changes made to the Contributory Pension scheme – but says “it is far from a complete and total solution”.
“Fianna Fáil has been to the forefront in calling for the anomalies in relation to the calculation of the Contributory Pension to be addressed and for the punitive changes introduced by Fine Gael and the Labour Party in 2012 to be rectified.
“As such, it would be churlish of me to not welcome the U-turn by Minister Doherty. However, the Minister and her predecessor had to be brought kicking and screaming to this position.
“I have a number of reservations about the Minister’s plans and we will be seeking amendments on several aspects of her approach to addressing this issue.
“It is disappointing that the Minister will only commit to making actual payments to pensioners in 2019 despite updated payments being awarded from30 March 2018.
“The Minister also ruled out reversing the changes introduced in 2012 which would have cost in the region of €70m. Her decision to opt for a Total Contributions Approach (TCA) and the introduction of a new Home Caring credit which is expected to cost in the region of €40 million is questionable at best. What Minister Doherty has put forward today is far from a complete solution.
“While the changes announced today will rectify some of the grievances many women have, they will be of little benefit to men who were affected by the 2012 rule changes.
“Approximately 40% of those impacted by the reduced band rates in 2012 are men and I am concerned that they will not benefit from the new Home Caring credit.
“The plans to put in place a Total Contributions Approach for all new pensioners from 2020 is very problematic based on the Ministers announcement as it will result in people who were due to get their pension from 1st January 2018 may have major cuts to their expected pension unless the Minister makes dramatic changes to her announcement.
“While the Minister’s proposals are good for some people aged over 66 it could create serious problems for those aged 64 and below who are due to get their pensions in 2020. The Minister must amend her approach to this particular group.”
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