Motion for pension equality is carried in the Dáil
Thousands left €35 worse off ‘We’re not going to rest’
A FIANNA Fáil motion calling for ‘equality of treatment’ for men and women in pension payments was carried by a vote of 85 to 44 yesterday.
A counter-motion by Social Protection Minister Regina Doherty was defeated by the same margin, leading to calls from the opposition for her to act immediately to resolve the issue that is causing pensioners to miss out.
Fianna Fáil social protection spokesman Willie O’Dea said his party will not rest until people have their full pensions restored.
Some 35,000 people are €35 worse off per week due to a controversial method of calculating the pension which was introduced as a money-saving measure in 2012.
However, the Government is not obliged to act on the equality motion as it is not legally binding, and it has chosen to ignore a number of results in the 32nd Dáil to date, such as a bid by Labour to delay the sale of AIB shares.
But Mr O’Dea warned yesterday that he will not let the issue rest, and vowed to make it the party’s number one priority at the next budget if it is not resolved before then.
He told the Irish Daily Mail that while the Government cannot be forced to act on the motion, ‘it puts them under considerable pressure’.
‘Mark my words, we’re going to follow up on this,’ he said.
‘We’ll be questioning the Minister on a weekly basis as to what steps they’re now going to take.’
Ms Doherty’s counter-motion pledged to conduct an analysis of changes to the contributions rate since 2012 and report on the options available.
‘They set out a course of action in their counter-motion last night and we’ll be expecting them to follow it,’ Mr O’Dea added.
‘In the end our motion succeeded because we’re not going to rest until this anomaly is addressed. At the very least, it will happen by the budget next year. That’s the worst-case scenario. If it’s not dealt with before then, it is absolutely going to be our top priority at the budget next year.’ The Fianna Fáil TD added that the Government had no choice but to resolve the inequalities now and he urged them to, ‘Get on with it’. He said: ‘Let’s be honest: this is an injustice that has been festering for some time. The Government have to act and time is not on their side. I really hope now that they just get on with it.’
The pensions anomaly occurred following changes to the contribution system made by Labour’s Joan Burton in 2012 and has affected upwards of 35,000 people, 60% of whom are women.
The level of pension a person is entitled to be paid is calculated by dividing the total number of PRSI contributions – or ‘stamps’ – they paid by the number of years they were in work.
However, an increased number of payment bands were introduced in 2012 as an austerity measure.
This had the effect of disadvantaging women who were forced to leave their jobs by the marriage bar or who left work to raise families. The anomaly was exacerbated in the budget when the Government gave an extra €5 to pensioners – apart from the tens of thousands of pensioners affected by the anomaly.
The Government has said it cannot afford the €290million it will cost to resolve the situation, despite admissions by Taoiseach Leo Varadkar and Finance Minister Paschal Donohoe that the system is unjust.
Mr O’Dea’s motion proposed resolving the issue for next year at a cost of €70million, and to work on solutions for the years to come.
The Department of Social Protection yesterday refused to comment on how it intends to proceed with the matter.