Written answers

Wednesday, 14 February 2007

Department of Social and Family Affairs

Tax and Social Welfare Codes

10:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 305: To ask the Minister for Social and Family Affairs if, since 1992, a spouse can receive PRSI contributions in lieu of their time for working at home raising children or if the number of years spent at home working is disregarded in terms of calculating the overall PRSI contributions for spouses in this circumstance; and if he will make a statement on the matter. [5615/07]

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 (from 1994) spent caring for children or incapacitated adults to be disregarded when a person's social insurance record is being averaged for pension purposes. Provision is also made for the award of credited contributions in the year in which a person commences or ceases to be a homemaker.

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.

In August 2000, my Department published a review of the qualifying conditions for old age (contributory) and retirement pensions. This review also included a general examination of the homemaker's scheme and the report suggested a number of reforms for further consideration including replacing the disregard system with one based on actual credited contributions.

A review of the homemaker's 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. It is expected that the Green Paper will be finalised by the end of March 2007 and published thereafter. A consultation process will then take place and the Government will publish a framework for future pensions policy on foot of this.

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