Written answers

Wednesday, 27 September 2006

Department of Social and Family Affairs

Pension Provisions

8:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 1045: To ask the Minister for Social and Family Affairs if all phases of the review of qualifying contributions for old age contributory pensions have been fully completed; the conclusions of same with particular respect to the homemakers scheme and retrospection issues; the changes that have been made or will be made as a result of these conclusions; and if he will make a statement on the matter. [29954/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The social welfare pension rights of those who take time out of the workforce for caring duties are protected by the homemakers 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, pay a minimum of 260 contributions at the correct rate 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 is a proposal to replace the disregard system with one based on actual credited contributions and this is under consideration by my Department. With regard to backdating the homemakers scheme, it is important to point out that in general, changes to insurability of employment arrangements are not back-dated and this principle was applied to the homemakers scheme in 1994.

The review referred to has not been finalised. Instead, it has been decided that it will be encompassed in the Green Paper on overall pensions policy to which the Government is committed as part of the social partnership agreement, Towards 2016. Publication of the Green Paper will be followed by a consultation process and a framework for future pension policy later in the year.

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