67,000 pensioners who took time out to look after their children in line for cash boost following review
UP TO 67,000 pensioners who took time out of work to care for their families could see a cash boost worth more than €30 a week by the end of March.
Pensioners, mainly women and those who retired over the past six years on less than the €243 a week State pension, are set to benefit most with a double-whammy in payments.
This is because of an expected hike of up to a fiver in the contributory pension in today’s Budget, as well as an increase due to a new way of calculating their payment.
Most of them are set for an increase due to the new calculation method, according to Social Protection Minister Regina Doherty.
A review of their social insurance records has kicked off and they are due the increase, backdated to March, early next year.
This could coincide with payment of the €5 Budget hike, which is expected from March.
Most of those who will benefit from the new method of calculating pensions – known as a ‘total contributions’ approach’ – are women who took time out to mind children.
They lost out because of a change in State rules on how their entitlements are assessed.
Those who made the lowest average contributions during their working lives have been given a smaller portion of the full pension since 2012.
The new assessment method gives credit for time spent in parenting or caring duties.
Age Action Ireland estimates that the average loss was between €20 and €31 a week.
“We will be pleased that people would see an increase in their pension entitlements,” said senior policy officer Corona Joyce.
“However, we continue to receive calls from thousands of people who remain affected by the cuts.”
She said they include those who worked in countries without bilateral agreements with the Republic allowing them to transfer their contributions record here and the self-employed, who were not required to make contributions before 1988.
The Department of Social Protection will be sending letters to the 67,000 pensioners within weeks detailing the review.