Written answers

Wednesday, 4 April 2007

Department of Social and Family Affairs

Pension Provisions

11:00 pm

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 212: To ask the Minister for Social and Family Affairs his plans to pay [i]pro rata[/i] pensions to those self-employed persons who have made contributions for between five and ten years when reaching pension age; and if he will make a statement on the matter. [13340/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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A special pension for the self-employed was introduced in 1999 to enable people who were over age 56 at the time of the introduction of PRSI for the self-employed in 1988, and who could not therefore meet the standard qualifying conditions, to receive a contributory pension. To qualify, a person must have been age 56 or over on 6 April 1988, started paying social insurance contributions as a self-employed person on or after this date and have at least 260 full-rate social insurance contributions paid on a compulsory basis since first starting to pay social insurance contributions as a self-employed person. The personal rate and increases for a qualified adult and a qualified child are paid at 50% of the standard maximum rate. I consider that the special arrangements introduced in 1999 are a reasonable response to the position in which those who qualify found themselves when they reached retirement and that the pension being paid represents good value for the contributions made.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 213: To ask the Minister for Social and Family Affairs his plans and when he expects to announce a scheme where stay at home spouses will be entitled to a pension in their own right; his proposals in this regard particularly for those women who have worked in the family home for years prior to the homemakers scheme; and when he expects to announce these changes. [13359/07]

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 in, and took effect from, 1994. Government policy in that, within the existing contributory and non-contributory pension system, as many people as possible qualify for payments in their own right. In this regard measures have been taken over the last 10 years to provide pensions for people who did not qualify including the easing of qualifying conditions for contributory pensions, the introduction of special measures such as the pre-53 pension and improvements to the means test for non-contributory pensions.

Many of those who were homemakers prior to 1994 are being paid as qualified adults on their spouses' pension. Since 2002 it has been open to couples to opt for the qualified adult portion of the pension to be paid directly to the spouse or partner. The Social Welfare and Pensions Act 2007, provided that, from September, separate payments will be made generally in all cases unless the couple decide otherwise. It is estimated that these changes will mean that an additional 4,000 spouses will receive separate payments each year. Qualified adults who do not wish to receive a separate payment will continue to be facilitated.

The homemaker's scheme is being reviewed in the context of the forthcoming Green Paper on pensions. Decisions in relation to the homemakers scheme, and the position of older people in general who do not at present qualify for any support under the social welfare pensions system, will be made in the context of the framework for long-term policy which will be developed after the publication of the Green Paper.

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