Doherty to propose partial solution to pensions anomaly

Minister for Social Protection Regina Doherty will bring a memorandum to Cabinet on Tuesday with a partial solution to a pensions anomaly which has seen some retired workers lose €1,500 per year.

The anomaly has seen about 40,000 people receiving reduced State contributory pensions because of a law change introduced by the Fine Gael-Labour coalition in 2012.

The change altered how a person’s State pension is calculated, with the majority of those impacted being women who took time out of work before 1994 to raise their children.

In the Dáil last week, Ms Doherty admitted that up to 42,000 people had been affected by the law change, with some receiving smaller pensions than others who had worked less.

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The estimated cost of correcting the anomaly is €70 million.

Ms Doherty said she was not in a position to provide that funding and something would have to “magically” happen. “It is not that there is a pot of money sitting in the department somewhere that can resolve this,” she said.

A spokesman for Ms Doherty would make no comment last night on what will be proposed at Cabinet. It is thought that the Minister will not be in a position at this stage to address the issue in its entirety. It is more likely that a partial solution, or a scheme that will be rolled out over the medium term, will be put forward for approval.

A review carried out on the issue was completed earlier this month and will also be discussed at Cabinet.