Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 385: To ask the Minister for Social and Family Affairs his plans to extend the homemakers credit beyond 1994; and if he will make a statement on the matter. [4795/08]

Martin Cullen (Waterford, 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. 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. The minimum paid contributions required will increase to 520 in 2012.

These conditions are designed to ensure that those qualifying for pensions have had an adequate and sustained commitment to the social insurance system as well as to uphold the contributory principle that underpins the qualifying conditions for all social insurance payments. While there are no plans to alter these arrangements in the immediate term, the operation of this scheme is subject to review in the context of the Green Paper on Pensions, with particular regard being paid to the operative date of the scheme and the use of credits for pension purposes rather than the current system of disregards. 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 that this will happen towards the end of the year.

It should also be noted that people of working age who are no longer liable for PRSI contributions may opt to protect their pension entitlements by applying to become a voluntary contributor. In order to be admitted to the voluntary contributions scheme, a person must have a minimum of 260 weeks of PRSI paid in either employment or self-employment and apply within 12 months of the end of the tax year during which they last paid PRSI or had a PRSI credited contribution. The requirement to have 260 paid contributions to gain access to the scheme is essential in that it ensures that the requisite minimum number of paid contributions required is in place to establish a contributory pension entitlement.