Written answers

Tuesday, 3 July 2007

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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Question 329: To ask the Minister for Social and Family Affairs if he will respond to correspondence (details supplied); and if he will make a statement on the matter. [19159/07]

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 334: To ask the Minister for Social and Family Affairs his proposals in regard to entitlement to a contributory old age pension for people who give up their careers to look after relatives in the home and in the community (details supplied); and if he will make a statement on the matter. [18759/07]

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 336: To ask the Minister for Social and Family Affairs the proposals he has in regard to entitlement to contributory old age pension for pensioners who volunteer their services to the community (details supplied); and if he will make a statement on the matter. [18860/07]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 339: To ask the Minister for Social and Family Affairs his views on whether persons who are full-time carers or who work full-time in a voluntary capacity in community care services should be given a credit for the purpose of qualifying for a contributory old age pension. [18904/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 329, 334, 336 and 339 together.

The PRSI system is designed to provide income protection to employees and the self employed in insurable employment, with entitlement to benefits based on a person experiencing certain contingencies and satisfying prescribed contribution conditions.

Insurable employment is employment which involves earnings from €38 per week and so the accumulation of contributions is relatively easy under the Irish system.

While the link between employment and self-employment is an essential aspect of the system, nevertheless, a number of arrangements are in place to protect the position of those who leave the workforce to care for children or adults needing care and assistance.

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. 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. Those carers who receive carer's allowance or benefit can, subject to conditions, receive credited social insurance contributions. There is also a system of voluntary contributions in place which allows people who have left the workforce to continue to make social insurance contributions.

Overall, the range of options available under the system to deal with caring issues, the availability of the voluntary contributions system and the very low level of earnings qualifying for social insurance contributions make it easy for someone to maintain an adequate social insurance record. A number of years ago my Department met representatives of the international organisation referred to in the submissions forwarded by the Deputies to discuss the social insurance position of its volunteers. I understand that there were difficulties in reconciling the ethos of the organisation in question with the requirements of the social insurance system and that the organisation was planning to consider alternative ways of meeting the pension needs of the volunteers.

As the Deputies are aware, the Government is committed to publishing a Green Paper on pensions under Towards 2016. The discussion in the Green Paper will, amongst other things, deal with the question, in the wider sense, of those who do not at present qualify for any support, contributory or non-contributory, under the social welfare pensions system and will set out the implications of making provision for these people.

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