Written answers

Thursday, 22 March 2007

Department of Social and Family Affairs

Pension Provisions

5:00 pm

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
Link to this: Individually | In context

Question 174: To ask the Minister for Social and Family Affairs if he will extend the home-maker's credit beyond 6 April 1994; and if he will make a statement on the matter. [10962/07]

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

The social welfare pension rights of those who take time out of the workforce for caring duties are protected by the home-maker's scheme which was introduced in and took effect 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.

For any year to be disregarded, a home-maker must be out of the workforce for a complete year (52 weeks) from 6 April 1994. Provision is also made for the award of credited contributions in the year in which a person commences or ceases to be a home-maker.

The question of backdating the home-maker's scheme gives rise to difficult and complex issues, not least of which is the position of other groups excluded from social insurance cover over the years and who do not qualify for contributory pensions. In general, changes to insurability of employment are not backdated and the same principle was applied to the home-maker's scheme when it was introduced in 1994.

A Green Paper on pensions is currently being prepared and will deal with the full range of issues and challenges associated with the pensions system including the issues relating to backdating the home-makers scheme. Following the publication of the Green Paper there will be a consultation process leading to the development of a long-term policy framework on pensions.

Comments

No comments

Log in or join to post a public comment.