Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 64: To ask the Minister for Social and Family Affairs if she will amend legislation to allow a person who takes a career break during the recession to be credited with a full credit history as this is one of the disincentives for not taking up this option. [9262/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The primary purpose of credited contributions is to preserve the continuity of a person's insurance record during periods when they are unable to work and pay PRSI in the normal way. In order to qualify for credited contributions, absences from work would generally have to be for reasons outside of the person's control, such as periods of proven illness or registered unemployment, or periods during which they may be entitled to certain other social welfare payments.

Credited contributions are not generally available in circumstances where a person voluntarily ceases insurable employment on a temporary or permanent basis. This reflects the contributory principle that underpins the qualifying conditions for all social insurance payments. However, a person taking time off work to care for children up to 12 years of age, or an incapacitated adult, may be entitled to avail of the homemaker's scheme whereby such periods can be taken into account for state contributory pension purposes at age 66.

One of the qualifying conditions for contributory pensions requires that the applicant must have a minimum yearly average number of paid or credited contributions throughout their working lives. Therefore, any prolonged gaps in insurance cover are likely to have significant consequences with regard to pension entitlement.

In the case of short-term benefits such as job-seekers allowance, illness, and treatment benefits a person may retain entitlement to such payments for a limited period after their last PRSI contribution but entitlement would then lapse unless further reckonable contributions are recorded on their behalf.

Subject to certain statutory conditions, it may be open to a person on a career break to pay voluntary contributions. However, it should be noted that voluntary contributions are reckonable only for state contributory pension, transition pension and widows/widowers contributory pension.