Heather Humphreys (Cavan-Monaghan, Fine Gael)
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In 2023, I introduced legislation for a series of landmark reforms to the State Pension system in response to the recommendations from the Pensions Commission. This set of measures represented the biggest ever structural reform of the Irish State Pension system.

One of the key measures under these reforms, which came into operation from the 1st January 2024, is the introduction of a flexible pension system in Ireland.

Under this system, there is now flexibility for those reaching State Pension age from the beginning of 2024 to defer access to their State Pension (Contributory) at any age from 66 up to the age of 70, and receive an actuarially adjusted higher rate of payment.

A person can use the period between 66 and 70 years of age to build up additional entitlements and, if a person has less than 520 PRSI reckonable paid contributions, they may be able to use this period to establish entitlement.

Those who defer claiming their State Pension (Contributory) and continue to work, will have access to certain short-term contingency payments during the period of deferral.

The situation remains unchanged where a person reaches State Pension age (66) and does not satisfy the conditions to qualify for State Pension (Contributory) or qualifies for less than the maximum rate, they may instead qualify for one of the following:

• The means-tested State Pension (Non-Contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the State Pension (Contributory); or
• An increase for a qualified adult (based on their own means), amounting up to 90% of a full rate State Pension (Contributory) where their spouse has a contributory pension; or
• Where their spouse/civil partner is deceased, a widow's/widower's/civil partner's contributory pension, which they may claim either based on their spouse's or their own social insurance record. The qualifying conditions for this require fewer contributions paid (260) than the State Pension (Contributory) for the maximum personal rate for those aged 66 or over.

Full details of the State Pension (Contributory) and how deferment works are set out on the Department's website at www.gov.ie/spc.

I hope this clarifies the matter for the Deputy.