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Submission 286

May 08

Green Paper Submission

In response to your invitation to make a submission on the Green paper on Pensions, I would like to make the following submissions in line with the remarks made at its launch by the then Taoiseach Bertie Ahern when he said, and I quote from the reported remarks on this issue: “Now that we are living fuller longer and more productive lives we need to shift our thinking.  Let us look at how we can create advantage from demographic trends to enhance the quality of life of individuals. The pension issue is a challenge which will be facing us for decades and will require a fair and flexible approach.”

  1. I would respectfully request that the issue of women who by virtue of the fact that they married had to give up their employment, at the time, thus effectively losing out on subsequent benefits, be looked at anew and whilst some would argue that the marriage bar was subsequently lifted,  in many cases women found themselves unable to return to the workplace given the dearth for one thing of there being any suitable childminding facilities to look after their children and unlike today where facilities abound.  Women feel that the important role they played in the formation and development of their children in those very difficult times has been forgotten, and whilst in a lot of cases, have the necessary number of contributions, nonetheless fall short of the yearly average to qualify for a full pension.
  2. Individuals who worked in the semi-state sector who have under the present law, the relevant number of full rate contributions, together with a high number of modified rate contributions are at a great disadvantage viz-a-viz those who have the relevant number of full rate contributions, but who have a lower number of modified rate ones, as far as the amount of pension applied to them is concerned.  Let me give some examples of this situation, which is very difficult to understand.

Page twenty six of the publication entitled retirement and old age contributory pension SW 18, illustrates the formula used by the department in arriving at the benefit deemed appropriate, whilst page twelve of booklet SW19 entitled Social Welfare rates of payment 07 illustrates the amount of pension payable.

For an individual with 260 full rate contributions and eight hundred modified ones, the formula used divides the total one thousand and sixty by forty eight to determine the yearly average, giving a pension of two hundred and five euro and twenty cent if all stamps were full rate, but because some are modified they multiply €205.20 * 260 and divide by the total number of stamps, giving a pension of €50.33

  • 260 Full Rate and 800 modified = €50.33
  • 260 Full Rate and 900  modified = €45.93
  • 260 Full Rate and 1000 modified= €42.34
  • 268 Full Rate and 1214 modified = €37.10
  • 320 Full Rate and 1862 modified = €30.09
  • 320 Full Rate and 1981 modified = €28.03

As can be seen from the foregoing, the more contributions one has to their credit the less they obtain in monetary terms.

Surely to all fair minded and right thinking people this situation is most unfair and I would respectfully request that whatever changes are necessary, whether they be policy or legislative, be put in place, in accord with the remarks already referred to.

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