Bernard Durkan (Kildare North, Fine Gael)
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Question 121: To ask the Minister for Social and Family Affairs her views on offering social welfare contribution credits for old age pension purposes to carers who have spent a major proportion of their working lives providing care for family or others in such need even though they may not have had to give up insurable employment to provide this care; and if she will make a statement on the matter. [18682/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 174: To ask the Minister for Social and Family Affairs her proposals to award pension based social welfare credits to carers who do not have social welfare contributions from other employment; and if she will make a statement on the matter. [18851/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 121 and 174 together.

In order to qualify for the maximum rate of the state pension (contributory), a person must, amongst other qualifying conditions, achieve a yearly average of at least 48 contributions paid or credited on his/her social insurance record over their working life. Reduced pensions are paid to those with yearly averages as low as 10 contributions.

Arrangements are also in place to cater for those with social insurance contributions at different rates, with contributions from other EU member States or countries with which Ireland has reciprocal social security agreements and with pre-1953 contributions.

The range of different payments available has made it easier for people to qualify for a contributory pension. Measures are also in place to protect the social welfare pension entitlements of those who leave work to care for sick or elderly relatives. People who qualify for payments such as carer's allowance or carer's benefit may, subject to conditions, qualify for credited contributions.

The homemaker's scheme, which was introduced in and took effect from 1994, 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. This scheme applies to people who take time out of the workforce for caring duties but who do not qualify for credits through the carer's allowance or benefit schemes.

Any person, including a carer, may pay voluntary contributions once they satisfy certain qualifying conditions. A person may choose to pay voluntary contributions, provided they are no longer covered by a PRSI scheme on a compulsory basis in Ireland, are no longer covered by a PRSI scheme on a compulsory or voluntary basis in any other E.U. country, are under age 66 and satisfy the qualifying conditions. Voluntary contributions provide cover for long-term benefits, such as pensions.

To become a voluntary contributor, a person must have paid at least 260 PRSI contributions in either employment or self-employment and apply within 12 months of the end of the contribution year during which they last paid compulsory insurance or were last awarded a credited contribution. The person must agree to pay voluntary contributions from the start of the contribution week that follows the week in which they left compulsory insurance.

From June 2006, the number of hours a person can engage in employment, self employment, education or training outside the home and still be eligible for carers allowance, carers benefit and the respite care grant was increased from 10 to 15 hours per week. Where a carer remains in employment he or she will continue to pay the appropriate social insurance contribution.

Overall, I am satisfied that adequate arrangements are in place to protect the pension entitlements of people who leave employment to provide full-time care so that they can qualify for a contributory pension. There are, of course, people caring who cannot benefit from these measures. The position of these, and others who are at present not receiving support through the social welfare pension system, is considered in the Green Paper on Pensions. A consultation process on the Green Paper is underway and will remain open until the end of this month.

The Government will respond to the process by publishing a framework for future policy on all aspects of pensions and I expect that this will be finalised before the end of the year. The position of those who are at present without a contributory pension entitlement will be considered in that context.