Written answers

Tuesday, 4 December 2007

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 98: To ask the Minister for Social and Family Affairs the steps he will take to ensure that all pensioners on integrated pensions benefit from increases in the State pension. [32192/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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An integrated occupational pension scheme is one where the pension payable, or the design of the benefit promise made, takes into account the state pension (contributory) or other similar contributory benefits payable by the State. Integrating occupational and social welfare pensions is a common practice and most defined benefit or final salary schemes are structured in this way. The practice is not generally subject to legislation but derives from the rules of individual pension schemes.

The manner in which integration operates can vary and depends on the rules of individual schemes. However, in a typical private sector scheme guaranteeing a total pension of two thirds of final income, salary is reduced by one and a half times the state pension payment to arrive at pensionable salary. When the pension is paid, the combination of the occupational scheme and the state pension will provide the overall target of two thirds of final salary.

Under the provisions of the Pensions Act 1990, integration may only take place at the point when a pension is first paid. Legislation does not permit reductions to be made to occupational pensions in payment to take account of subsequent increases in the state pension. The legislation also provides for a minimum level of benefit to be paid from an occupational scheme based on the total contributions made by the employee to that scheme.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 99: To ask the Minister for Social and Family Affairs his intentions in relation to the awarding of credits to home-makers and other carers for years spent on caring duties in place of the system of disregarding these years when computing average credit history; and if he will make a statement on the matter. [32198/07]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 102: To ask the Minister for Social and Family Affairs the steps he will take to facilitate women, forced out of employment due to the marriage rule, to avail of contributory pensions; and if he will make a statement on the matter. [28619/07]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 116: To ask the Minister for Social and Family Affairs the plans he has to extend the home carers PRSI credit to a date prior to 1994; and if he will make a statement on the matter. [24833/07]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 391: To ask the Minister for Social and Family Affairs if he will revise the qualification guidelines for receipt of insurance based payments where the claimant has spent a specific period caring for a relative or neighbour; and if he will make a statement on the matter. [32560/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 99, 102, 116 and 391 together.

The Government is anxious to ensure that as many people as possible can be accommodated within the social welfare pensions system, with due regard being paid to the contributory principle underlying entitlement to contributory payments and, in the case of non-contributory payments, the need to ensure that resources are directed to those who are most in need. In this regard, over the last 10 years, means tests have been improved and qualifying conditions for contributory payments made easier.

As the House is aware, I published the Green Paper on Pensions on 17th October which addresses the issue of women who had to resign due to the marriage bar or who were caring for children or incapacitated adults before the introduction of the homemakers scheme in 1994. The Green Paper sets out a range of approaches that could be considered to deal with these issues, including universal pensions, replacing the homemakers disregard system with credits and back-dating the homemakers scheme.

A consultation process on the Green Paper is now underway and will remain open until mid 2008. The Government will respond to the process by publishing a framework for future pensions policy and I expect it to be available towards the end of next year. Decisions in relation to those who are not at present receiving support through the social welfare system, including those who had to leave employment on marriage, will be considered in that context.

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