Written answers

Wednesday, 10 May 2006

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

Question 43: To ask the Minister for Social and Family Affairs his views on whether the pension system for women (details supplied) should change, taking into account the fact that if both persons were unemployed all their lives their joint non-contributory would be in the same monitory region; and if he will make a statement on the matter. [17574/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

As the Deputy is aware, the social welfare system comprises two types of pension; contributory pensions based on social insurance contributions and non-contributory pensions, payment of which are subject to a means test. The contributory pension is paid at a slightly higher rate; however, its main advantage is that it is paid regardless of any other income a person might have. Within that basic structure, the Government is anxious to ensure that as many people as possible can qualify for pensions in their own right.

A number of measures have been introduced over the years which make it easier for people to qualify for contributory pensions. These include the reduction in the yearly average number of contributions required for pension purposes from 20 to 10 and the introduction of special half rate pensions based on pre-53 insurance contributions. Pro-rata pensions are also available to allow people with mixed rate insurance records to receive a payment. This set of measures is of particular benefit to women who may have less than complete social insurance records due to working in the home.

The social welfare pension entitlements of those who take time out of the paid workforce for caring duties are protected by the homemaker's scheme which was introduced from 1994. The scheme allows up to 20 years spent caring for children or incapacitated adults to be disregarded when a person's social insurance record is being averaged for pension purposes. However, the scheme will not of itself qualify a person for a pension. The standard qualifying conditions, which require a person to enter insurance 10 years before pension age, have a minimum of 260 paid contributions increasing to 520 from 2012 and achieve a yearly average of at least 10 contributions on their record from the time they enter insurance until they reach pension age must also be satisfied.

There are, of course, those who will not benefit from the homemaker's scheme and who cannot qualify for a pension in their own right. In this regard, the Government is committed to increasing the payment for qualified adults (age 66 or over) to the same level as the personal rate of the old age (non-contributory) pension and to facilitate the direct payment of the allowance to spouses and partners. Separate payments have been available on request since 2002 and my Department is at present examining the legal and administrative issues involved in enhancing these arrangements.

I will continue to look for ways, within the current social welfare structure, in which the needs of older people who are at present outside the social welfare pensions system may be addressed further.

Comments

No comments

Log in or join to post a public comment.