This evening, Deputy Broughan has blasted Fianna Fáil for bringing forward a motion on ‘Correcting Pension Inequities’ just 10days since they signed off on Budget 2018 with their coalition partners Fine Gael. Where was Fianna Fáil’s concern when negotiations were ongoing for Budget 2018? One can’t help but wonder if this was an agreed publicity stunt between the two right wing parties prior to Budget Day last week – let the Finance Minister call the situation ‘bonkers’ on air and then Fianna Fáil can swoop in to the rescue with a motion that will surely pass in the Dáil. It is, of course, the second such budget that Fianna Fáil has facilitated in the 32nd Dáil and yet neither have addressed the PRSI contribution band changes introduced in Budget 2012.
Prior to 2012, there were four PRSI Contribution bands used to determine the level of State Pension you would qualify for and receive. The maximum payment was paid to those with 48 or more average yearly contributions, 98% of that was paid to those with 20 to 47 contributions, 75% to those with 15 to 19 contributions and 50% to those averaging 10 to 14 yearly contributions. Post 2012, despite announcements by then Fine Gael / Labour Government that there were no cuts to the State Pension, the PRSI Contribution bands were expanded from four to six for new applicants. Now, those with an average of 48 yearly contributions or more were still entitled to the maximum amount, those with an average of 40 – 47 are entitled to 98% of the maximum, those with average annual contributions of 30 – 39 are now entitled to 90% of the maximum, those with 20 – 29 average contributions are receiving just 85% of the maximum, those with average contributions of 15 – 19 are receiving 10% lower than pre-2012 and are down to 65% of the maximum and those in the bottom band of 10 – 14 average contributions also received a 10% reduction and are now just receiving 40% of the maximum amount. In monetary terms we are talking up to €30 less per week or around €20,000 per year (depending on the bands).
Deputy Broughan questioned where Fianna Fáil’s concern was on the 9th of February this year when Age Action published its report “Towards a Fair State Pension for Women Pensioners” by Maureen Bassett MSc. On the 21st of February this year Deputy Broughan raised the matter during Leaders’ Questions with Taoiseach Kenny and was told “I will have the issue referred to the Committee on Budgetary Oversight for consideration. Ministers will reflect on the preparation of the budget for 2018.” Deputy Broughan also raised the matter a number of times with Minister Donohoe at meetings of the Budgetary Oversight Committee and yet nothing was done and now Fianna Fáil come forward with a non-binding motion just a week after Budget 2018 – why not just submit amendments to the upcoming Social Welfare Bill?
Deputy Broughan says “This issue is of huge importance and I welcome reports that the motion will pass through the House. As I have mentioned I have been advocating for the Budget 2012 changes to the bands to be reversed for some time now. The Age Action report mentioned above was a study from September 2012 to June 2016 and found that of the almost 36,000 pensioners adversely affected by changing the PRSI contribution bands from 4 to 6, two-thirds of them were women. Given that the Marriage Bar was in place until 1973 and that the Homemakers Scheme was only backdated to 1994, these band changes are mainly targeting a cohort of women who reared their children in the 60s and 70s and are now retiring. It is of utmost importance and urgency that these band changes are reversed immediately.”
