Written answers

Tuesday, 21 October 2008

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 420: To ask the Minister for Social and Family Affairs the position in regard to qualification for retirement or old age pension for those who gave up work to care for a person with special needs with particular reference to the allocation of credit contributions for the period of care; and if she will make a statement on the matter. [35026/08]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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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.

The contributory pension entitlements of those who leave employment to care for children or incapacitated people can be protected in a number of ways. People who qualify for payments such as carer's allowance or carer's benefit may, subject to conditions, qualify for credited contributions.

If a person does not qualify for credits through the carer's allowance or benefit schemes they may be able to avail of the homemaker's scheme. This was introduced from 1994 and 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. 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 this country or on a compulsory or voluntary basis in any other E.U. country. 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 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. 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 discussed in the Green Paper on Pensions and decisions in relation to them will be made in the context of the framework for future pensions policy which I expect to finalise by the end of the year.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 421: To ask the Minister for Social and Family Affairs if she will upgrade the family income supplement payments in line with the current economic situation; and if she will make a statement on the matter. [35027/08]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Last week's budget provided for improvements to the family income supplement scheme (FIS) which is paid to low income working families. The income limits for FIS are being increased from January 2009 by €10 a week in respect of each child, giving increases ranging from €6 to €48 a week, depending on the family size. It is expected that an additional 2,000 families will benefit from FIS in 2009 bringing the total number to 29,000

The cost of this measure is estimated to be €10.4m. in a full year.

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