Written answers

Tuesday, 8 December 2009

Department of Social and Family Affairs

Social Insurance

10:00 pm

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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Question 314: To ask the Minister for Social and Family Affairs her plans to maintain PRSI contributions and pension contributions for those in receipt of carers allowance; and if she will make a statement on the matter. [45313/09]

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 as the standard qualifying conditions must be satisfied. These 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. The requirement for paid contributions will increase from 260 to 520 from 2012.

There is also a number of other ways in which pension entitlements can be protected. People who qualify for payments such as carer's allowance or carer's benefit, subject to certain conditions, may qualify for credited contributions for the period they are receiving the payment. 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. This means that where a carer remains in employment he or she will continue to pay the appropriate social insurance contribution. Also, any person, including a carer, may pay voluntary contributions once they satisfy certain qualifying conditions.

The operation of the homemaker's 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. Any changes to the scheme will be addressed as part of the national pensions framework which will be published in the near future.

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