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The government will spend €40 million closing the 'pensions gap'

The people impacted, mainly women, lose out on around €30 per week under the measures.

THE PENSION ANOMALY which has seen nearly 40,000 pensioners who spent time working in the home paid less than others will be addressed.

Social Protection Minister Regina Doherty announced today that €40 million will be spent to bring those who lost out on money due to band changes in 2012 into line with others.

The people impacted, mainly women, lose out on around €30 per week under the measures.

A new Total Contribution Approach (TCA) will be available from 30 March to pensioners affected by the 2012 changes, and will include up to 20 years of a new home caring credit. The scheme will see increase for those, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role.

Doherty said that the 40,000 people affected will be contacted in the autumn and offered the chance to move to TCA from the state pension system – but all pensioners will be allowed stay on the rate which leaves them best off. Those who have an absence in their records will be asked to sign a statutory declaration.

Pensioners do not need to contact the Department or do anything else until written to by the Department nearer the end of the year.

“In recent months, many people expressed concern about their pension rates, which were affected by rate band changes in 2012. We listened and we worked on a solution.”

The scheme will cost around €40 million this year and money owed will be paid in a lump sum to pensioners in the first quarter of next year.

However, Doherty said that it was not legislatively possible to pay money that people had lost in the years since 2012. She said that because legislation could not be retroactive, the payments could only be considered from the end of March.

The Department uses the example of a 69-year-old named Anne. In their example, she was born in 1948 and worked from 16 to 22. She then had three children and returned to the workforce in 1996 and paid PRSI until 2013.

Under the current system, her pension is paid on the years she made PRSI contributions and comes out with €202.80 a week.

With the new system, she gets 18 years of PRSI credits for the time spent raising her children and comes out with €238.30 a week.

The TCA will replace the “yearly average” approach for all new State Pension (contributory) applicants from around 2020 onwards.

Justin Moran, Head of Advocacy and Communications with Age Action, said: “We’re disappointed that the Government has decided not to reverse the 2012 pension cuts, which is the simplest way to fix this injustice and deliver a fair State Pension.

“But we appreciate that Minister Doherty’s solution can make a very real difference in the incomes of thousands of men and women who were punished by the pension system for rearing their families.”

Explainer: Why has a big post-Budget row erupted over women’s State pensions?

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    Mute Barry Somers
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    Feb 25th 2019, 7:10 AM

    I agree fitness is extremely important,
    But I hope things have changed from when I was in school where if you didn’t do GAA it meant you basically did nothing.

    There’s more to exercise then GAA stuff

    165
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    Mute Catalanista
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    Feb 25th 2019, 7:25 AM

    @Barry Somers: Totally agree, if you love football and hurling great, but if not you were neglected. It’s only when you get to uni that you get to do the cool sports like fencing or paragliding

    64
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    Mute FlopFlipU
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    Feb 25th 2019, 7:42 AM

    @Catalanista: A bit childish now ,that’s not what he meant and you know it but to add to the situation there is a insurance problem with claim’s for all sort’s of rubbish

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    Mute Dave Barrett
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    Feb 25th 2019, 8:01 AM

    @Barry Somers: where i was at school if you did GAA sport, football or hurling and if you were any good to play for the school team but didnt or wouldnt play then you were victimised by the couch who doubled as a teacher as well.

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    Mute Frank Scanlon
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    Feb 25th 2019, 3:49 PM

    @Barry Somers: Our native sports should be promoted as much as possible at schools level. Of course children should be encouraged and given the option to try lots of different sports, but for the likes of you its any excuse to have a cheap shot at the GAA. You could say the exact same about lots of other schools which promote rugby, soccer, even volleyball at the expense of other sports, obviously you went to a GAA focused school

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    Mute The Risen
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    Feb 25th 2019, 8:07 AM

    Replace the half hour per day on the primary curriculum spent on religious instruction/education with PE. Kill two birds with the one stone.

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    Mute James Wallace
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    Feb 25th 2019, 8:12 AM

    @The Risen: cycle or walk to school and use the religious period for nutrition classes, social awarenessand mental health education. A holistic approach to personal and societal well being.

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    Mute The Risen
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    Feb 25th 2019, 8:15 AM

    @James Wallace: Agreed. however, many families are not within walking distance of their school. A solution is needed that catches all students.

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    Mute James Wallace
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    Feb 25th 2019, 10:14 AM

    @The Risen: true but even new schools are not incorporating safer ‘active travel’ options for students. Last year, somewhere in Dublin I forget where, councillors objected to safe cycling routes for children that were part of the new school build plan, because of the impact it would have on traffic. We have our priorities all wrong in that regard. Also, have a look at this link from Knocknacarra in Galway. There are alternatives Scroll to the bottom for video
    https://www.google.com/url?sa=i&source=undefined&cd=&ved=0ahUKEwj43beF09bgAhWVRBUIHXBLDaQQzPwBCAM&url=https%3A%2F%2Fwww.rte.ie%2Fnews%2Fconnacht%2F2019%2F0125%2F1025475-schools-galway-cycling%2F&psig=AOvVaw2haFEj5onldEwKi0PIsDxX&ust=1551176001321962

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    Mute Rathminder
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    Feb 25th 2019, 8:08 AM

    I agree about offering what girls want. Many will opt for classes that they see connected to appearing fit. Circuit training and weights may also be a positive option. I can’t remember physical education classes being enjoyable at all.

    38
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    Mute Aisling
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    Feb 25th 2019, 9:00 AM

    @Rathminder: they trialed yoga with our year for P.E. and I’ve never seen the whole class more engaged with exercise. It worked really well.

    37
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    Mute Seeking Truth
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    Feb 25th 2019, 9:07 AM

    Pilates, TaeBo (kick boxing) and Zumba would be great options. Also weightlifting would be brilliant. I learned how to design a weight-lifting regimen in one of my university classes and it was a life skill that I have been able to pass onto my 15-year old son. Only offering hockey or rounders for PE in senior cycle is a bit short sighted.

    29
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    Mute Ranty McCrank
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    Feb 25th 2019, 12:24 PM

    Regular exercise reduces all cancers by 45%.

    Regular exercise essentially reduces every disease (heart disease, stroke, diabetes, bone fracture, dementia…..) by half and not exercising doubles the incidence of most diseases.

    No sponsorship from big pharma to get this message out.

    17
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    Mute Gerard Heery
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    Feb 25th 2019, 9:00 AM

    Dream on ,between health and safety, solicitors, and insurance premiums any type of physical activity “est vorbodden”

    17
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