Bernard Durkan (Kildare North, Fine Gael)
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142. To ask the Minister for Social Protection the extent to which on-going review and discussion continues to take place in respect of the funding of the various forms of pension schemes in the future; and if she will make a statement on the matter. [26266/13]

Joan Burton (Dublin West, Labour)
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The Government is very aware of the serious funding challenges facing pension schemes. It is acknowledged that the fundamental problem is that pensions are significantly more expensive due to increasing life expectancy and lower than expected investment returns which are reflected in increased annuity rates. You will be aware of the range of both administrative and legislative measures that have been put in place in the last few years to assist trustees and employer respond to the impact the financial downturn has had on the funding levels of pension scheme. These changes have been put in place against the backdrop of the Green Paper on Pensions which was published in 2007, the downturn in financial markets in 2008, and the review of the defined benefit pension model in 2011.

The Review of the Irish Pension System which was published by the OECD in April this year looks at issues relating to the sustainability, adequacy, modernity and equity of the pensions system. Consideration of the recommendations of this Report will also inform further developments in this area.

Bernard Durkan (Kildare North, Fine Gael)
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144. To ask the Minister for Social Protection the extent to which persons who gave up employment to care for a relative continue to be credited with contributions for old age pension; and if she will make a statement on the matter. [26268/13]

Joan Burton (Dublin West, Labour)
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Those who leave the workplace for homemaking/caring purposes can, if eligible, avail of the homemakers scheme which helps to provide a higher rate of pension for those who meet the qualifying conditions. The homemaker scheme comprises a period of disregard when calculating eligibility for a State pension so time taken out of the workforce for caring duties for those who qualify for the scheme, can be disregarded when assessment is being made for State pension.

The scheme was introduced in and took effect from 1994, and allows up to 20 years spent caring for children under 12 years of age or incapacitated adults to be disregarded when a person’s social insurance record is being averaged for pension purposes. It impacts on women in particular as it assists them to qualify for a State pension (contributory) by recognising periods spent caring for children or incapacitated persons. The homemaker disregard will not, of itself, qualify a person for a pension. Eligibility for the homemaker’s scheme is conditional on firstly meeting the standard qualifying conditions for State pension.

You may wish to note that for those who give up work to care, and the evidence suggests that it is mostly women, the recently published Actuarial Review of the Social Insurance Fund confirms that the Fund provides better value to women. The Review shows that those with lower earnings and those with shorter contribution histories, mostly women, have and will continue to obtain the best value for money from the Fund due to the redistributive nature of the Fund. For those who do not qualify for the State pension, the means non-contributory pension will continue to be available to those with an income need and details of same are available at www.welfare.ie