David Stanton (Cork East, Fine Gael)

I move amendment No. 17:

In page 3, before section 1, to insert the following new section:

"1.—The Minister for Social and Family Affairs shall, within 3 months of the commencement of this Act, lay before each House of the Oireachtas, a report on improving entitlement levels to full contributory pensions for all older people.".

While this is an important amendment, there is not much time left to debate the Bill. The amendment relates to a better entitlement to a full contributory pension for qualified adults, many of whom have been excluded from eligibility for a contributory pension as a result of the marriage bar and the failure of all Governments to introduce retrospective credits for homemakers and, in doing so, to give many women recognition for the years they spent working in the home. Consequently, many elderly women are on low incomes and are dependent on their husbands for entitlements to social welfare payments.

There are issues regarding the PRSI system, as outlined by the IFA, that make it difficult for farmers' spouses to qualify for old age or State pensions unless they become partners in the farm businesses or are paid a wage by their spouses. Many elderly pensioners on half rate pre-1953 pensioners and pro rata pensions are excluded from receiving full contributory pensions as a result of changes in the PRSI system and the fact that they needed to move abroad to get work. This relates to the famous averaging rule.

There is also the matter of social insurance changes for the self-employed in 1988 and the ten year rule, which meant that any self-employed person, in particular farmers who were between 60 years and 65 years of age in 1988, did not fulfil the eligibility criteria for a full contributory pension. The IFA has suggested that a special half rate pension be introduced for these people and a 75% pension for those aged between 56 years and 60 years of age when the change came into force.

The Minister has expressed an interest in making alterations to the social insurance system to allow people over 65 years to continue to pay PRSI and improve their contributory pension entitlements. He could also examine the possibility of allowing people to defer State pension entitlements in favour of a higher rate payment for later retirement. While we will not reach the matter of social insurance for childminders, it should be examined.

See this speech in context