Written answers

Tuesday, 17 June 2008

Department of Social and Family Affairs

Pension Provisions

11:00 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 568: To ask the Minister for Social and Family Affairs, further to Parliamentary Question No. 385 of 12 February 2008, her plans in the context of the Green Paper on Pensions to extend the home-makers credit beyond 1994; and if she will make a statement on the matter. [22924/08]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, 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 operation of this scheme was reviewed 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.

Alternative means of providing pensions for homemakers, and others at present outside the social welfare pension system, are also explored in the Green Paper, including the use of universal entitlements with qualifying criteria based around residence rather than contributions.

The consultation period on the Green Paper has just concluded and work will now commence on deciding on a framework for future policy in this area. Decisions in relation to the homemakers scheme will be made in that context. It is expected that the policy framework will be finalised by the end of the year.

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