Written answers

Wednesday, 25 June 2008

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 108: To ask the Minister for Social and Family Affairs if all carers providing full-time care are awarded social welfare contributions for retirement or old age pension regardless of whether they have had previous insurable employment; and if she will make a statement on the matter. [24816/08]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 189: To ask the Minister for Social and Family Affairs if she will award contributory old age pension credits to carers who have provided care for ten years or more; and if she will make a statement on the matter. [24987/08]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 190: To ask the Minister for Social and Family Affairs if she will review the entitlements to contributory State pension for carers who have spent a specific number of years caring notwithstanding the fact that they might not have had other insurable contributions; and if she will make a statement on the matter. [24988/08]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 108, 189 and 190 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. These arrangements have 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 certain 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. Voluntary contributions allow a person to remain insured once they leave the compulsory PRSI system. To become a voluntary contributor a person must have at least 260 PRSI contributions paid in respect of 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. 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 carer's allowance, carer's 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 was considered in the Green Paper on Pensions. A consultation process on the Green Paper was conducted recently. The Government will respond to the process by developing a framework to address the pensions agenda over the longer term 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.

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