John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 154: To ask the Minister for Social and Family Affairs his views on the budget submission made to Government on behalf of the Retired Nurses Association of Ireland relative to his Department; and if he will make a statement on the issues raised. [12630/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The submission in question includes three main issues which are relevant to my Department. These include submissions on the living alone allowance, pensions for older women and the role of modified insurance in qualifying conditions for contributory pensions.

The living alone allowance is a supplement of €7.70 per week payable with certain social welfare payments. The allowance is an integral part of the social welfare system but it is not a benefit in its own right. In order to receive the allowance a person must first qualify for one of a range of payments. I do not feel that it would be appropriate to establish the allowance as a separate benefit and to pay it to those who are not receiving income support from my Department.

With regard to the question of those who left work as a result of the marriage bar the position is that the issues which arise here relate to the occupational pension position of these women and are not something which fall to be addressed through the social welfare system. Questions in relation to the operation of the marriage bar are a matter for the Minister for Finance who has responsibility for the terms and conditions of employment and the pension arrangements for public servants generally.

In general, the social insurance class paid by those affected by the marriage bar was a modified rate which gives coverage for widow's, widower's and orphan's pensions and occupational injury benefit only. This reflected their occupational pension position and general contract of service. Accordingly, even if they had continued in employment, contributions paid at this class would only have entitled them to an occupational pension and not one paid under the social welfare system.

That said, the Government is committed to making contributory payments available to as many people as possible within the basic social welfare structure, based on a combination of social insurance and means tested payments. In this regard, a number of special measures have been taken in recent years to provide pensions for people with deficient insurance records. These include a reduction in the average number of contributions required for pension purposes, the introduction of pro-rata pensions based on full and modified rate insurance and the provision of special payments such as the pre-53 pension. These measures are of particular benefit to women who may have less than complete social insurance records.

Measures are also in place since 1994 to protect the pension entitlement of those who take time out of the paid workforce for caring duties. This scheme, known as the homemaker's scheme, allows for up to 20 years to be disregarded when a person's insurance record is being averaged for pension purposes. Permanent and pensionable public servants and many employees in the semi-State sector employed before April 1995 are liable for a modified rate of social insurance contribution. Such contributors have traditionally been insured for a limited range of social insurance benefits — widow's, widower's and orphan's — contributory — pensions, bereavement grant, occupational injuries benefits and carer's benefit. The level of benefits available broadly reflects the level of social insurance contribution paid and the reduced need for protection or coverage against Those recruited after 6 April 1995, however, are insurable at PRSI class A. These contributions can provide entitlement to the full range of social welfare benefits and pensions. However, the occupational pension entitlement of these employees has been modified to take account of their entitlements under the social welfare system.

The number of public servants paying PRSI class A is steadily increasing and will over time come to represent the norm throughout the public sector. However, modified insurance will play a major part in the insurability of those in the public service for many years to come with some 140,000 currently insured at these rates. Also, an estimated 77,000 pensioners are receiving payments from public service pension schemes covering civil servants, local authority staff, the education sector, the Garda, Defence Forces, health service and non-commercial semi-State bodies, the majority of whom were probably in the insurance category under review. Any changes in the status of modified social insurance contributions would have major immediate and ongoing cost implications for the social welfare system.

The relationship between social welfare pensions and existing occupational pension entitlements would also have to be reviewed to ensure consistency of treatment between those who paid modified insurance and post 1995 recruits to the public service. At this stage I have no plans to change the status of modified social insurance contributions as suggested.