David Stanton (Cork East, Fine Gael) | Oireachtas source

In the case of paternity, paid maternity and paid adoptive leave, all employment rights, except the right to remuneration, are preserved while the person is on leave. In the case of unpaid maternity or adoptive leave and unpaid parental leave under the 1998 Act, in addition to the remuneration, superannuation benefits and contributions are not preserved either. This amendment would apply the latter regime to the parent's leave. The amendment would interrupt the build-up of contributions to the employee's pension scheme and would, as I understand it, serve to lessen to some extent the pension payable when a person retires. I see parent's leave as being quite similar to paternity leave in terms of its duration and the fact that it is reasonably early in the life of a child. In contrast, unpaid parental leave is now 26 weeks and can be taken up until the child is 12. For these reasons, I am not disposed to accept the amendment.

The State pension is distinct from private pension schemes and section 18(4) provides that an employee on parent's leave will not need to make a PRSI contribution in any week in which he or she does not have reckonable earnings. However, in this position such employees receive a credit and they are not adversely affected.

See this speech in context