Written answers

Thursday, 1 March 2007

Department of Social and Family Affairs

Social Welfare Benefits

5:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 51: To ask the Minister for Social and Family Affairs further to Parliamentary Question No. 165 of 14 November 2006, if he will address the matter whereby some women in occupational pension schemes do not accrue benefits while on unpaid maternity leave; and if he will make a statement on the matter. [7968/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Under the Maternity Protection Acts 1994 and 2004, a woman may be entitled to statutory minimum maternity leave of 22 weeks. Regulations provide that this is increased to 26 weeks where maternity leave commences from 1 March 2007. Membership of an occupational pension scheme must continue while she is on statutory maternity leave. A member of a defined benefit scheme will continue to accrue pensionable service during the period of this statutory leave. If the employer pays the woman during the statutory maternity leave, she may be required to continue paying employee contributions to the scheme, as appropriate, whether a defined benefit or defined contribution scheme.

If a woman takes additional maternity leave above the statutory minimum and is paid by her employer during this period, her membership of the pension scheme will also continue. However, if she takes additional unpaid maternity leave, then whether or not she continues to accrue retirement benefit depends on the rules of the particular scheme.

In relation to social welfare pensions a PRSI credit is awarded for each week of unpaid maternity leave up to a maximum of 16 weeks and these are reckonable for the purpose of determining entitlement to State contributory pensions.

The requirements in relation to continuing membership of occupational pension schemes support the statutory provisions for maternity leave and I consider that this is a reasonable approach. In the circumstances, I have no plans to increase obligations on employers in this area. However, the matter will be kept under review.

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