Written answers

Tuesday, 7 November 2006

Department of Social and Family Affairs

Social Insurance

8:00 pm

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 378: To ask the Minister for Social and Family Affairs the cost of crediting homemakers' work in the social insurance system by changing the disregards in the homemakers scheme into credits, and making them retrospective; and if he will make a statement on the matter. [36291/06]

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 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.

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 appropriate rate and achieve a yearly average of at least 10 contributions from the time they enter insurance until they reach pension age must also be satisfied.

Accordingly, a person who cannot satisfy the basic requirements outlined above or whose contribution record is based solely on modified contributions, payable in the public service, cannot benefit from the scheme.

Because the homemaker's scheme only covers caring periods from 1994, it is not yet a factor in determining eligibility for social welfare pensions. In the circumstances, it is difficult to say what the cost implications of changing the basis of assessment to credits will be or when they are likely to arise.

Back-dating the scheme could benefit women in two ways. Those who are currently receiving a reduced rate pension could see their payment increase while it might also assist those who are currently outside the social welfare pension system to receive a payment. It is difficult to estimate the cost of this improvement but my Department considers it could be in the range of €110 to €220 million. A proportion of the additional cost would involve improvements in the level of payments to people who are already on reduced rate contributory pensions.

A review of the homemakers scheme and other issues relating to social welfare pensions is taking place in the context of the forthcoming Green Paper on pensions, to which the Government is committed as part of the new social partnership agreement, Towards 2016. At this stage it is planned to publish the Green Paper by the end of March next year. A consultation process will then take place and the Government will publish a framework for future pensions policy later next year.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 379: To ask the Minister for Social and Family Affairs the details of the 2005 outturn for PRSI disaggregating employer, employee and self employed; and the forecast for the 2006 outturn. [36357/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The Revised Estimates Volume for 2006 provides for Appropriations-in-Aid of €1.203 billion in respect of health contributions. The latest available forecast suggests that the outturn will be €1.243 billion giving a surplus of €40 million.

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