Pension reforms to make system fairer says Ritchie

Reforms to the State Pension system in Northern Ireland will soon make it easier for more people to qualify for a full State Pension.

The reforms to State Pensions, which will be introduced on 6 April 2010, will make the system fairer for both men and women, and in particular, those with caring responsibilities.

Margaret Ritchie said: “Changes are being introduced to the State Pension from 6 April 2010 to better reflect how we live and work today, including the fact that people will qualify for a full pension with fewer years on national insurance contributions. The changes will make sure that the State Pension is fairer, more accessible and more widely available."

From 6 April 2010, a number of changes will be made to the current pension system:

• Men and women reaching State Pension age will need just 30 years of National Insurance contributions to qualify for a full basic State Pension; this is in contrast to the 39 years for women and 44 years for men needed in the current system. For example, at present, a man with 30 qualifying years, is entitled to 69% of the basic State Pension, receiving £65.72 per week. However, on or after 6 April, 2010, a man reaching State Pension age with 30 qualifying years will be entitled to 100% of the basic State Pension, receiving £97.65 per week.
• The State Pension age for women will gradually start to rise from 60 to 65 between 2010 and 2020, bringing it in line with that of men.
• A new carers' credit will be introduced to help parents and carers build up qualifying years for State Pension whilst still undertaking their important caring responsibilities in the home.

Minister Ritchie added: “The pension reforms will benefit people across Northern Ireland. Three-quarters of women reaching State Pension age this year are expected to get a full basic State Pension, compared to around half without these changes. By 2025, this is expected to rise to over 90% of women.

“For the first time, it will be possible for a carer to build up a State Pension based entirely on credits, this is great news for many who contribute so much to society but who, until now, have not been recognised for their hard work.”

Notes to editors:

1. A direct mailing exercise has been ongoing, on a phased basis, to raise awareness amongst women directly affected by the equalisation changes. This will continue until January 2012. From 2024 State Pension age for both men and women will gradually rise from 65 to reach 68 by 2046. These changes are being introduced in response to an ageing population in order to ensure the State Pension is sustainable for future generations.

2. The current Home Responsibilities Protection (HRP) scheme will be replaced by a new weekly carers' credit. These credits will be available to:

• those awarded Child Benefit for a child under 12;
• an approved foster parent;
• the partner of a person awarded Child Benefit for a child aged under 12 where the Child Benefit recipient has otherwise achieved a qualifying year for both basic and additional State Pension purposes;
• a person who is caring for a person or persons for 20 or more hours per week where the person being cared for is in receipt of a disability benefit which will include attendance allowance, disability living allowance (middle or highest rate care component) and specified industrial injuries benefits;
• a person who is caring for a person or persons for 20 or more hours per week where the Department is satisfied that the level of care is appropriate; or
• a person receiving Income Support where the Department has determined that they are regularly and substantially engaged in caring for the purposes of the Income Support (General) Regulations (Northern Ireland) 1987.

3. For more information on pension reform go to: http://www.nidirect.gov.uk/betterfuture or call 0800 678 1132.

4. Media enquiries to DSD Information Office on 028 9082 9496. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.