Written answers

Wednesday, 6 May 2015

Department of Social Protection

Pension Provisions

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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108. To ask the Minister for Social Protection her views on a matter (details supplied) regarding State pensions; and if she will make a statement on the matter. [17829/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The State pension (contributory) is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. This is particularly important given the challenge that increased longevity is posing for the future sustainability of the State pension. Consequently, when assessing whether an individual is entitled to a State pension, and to ensure that they can maximise such entitlement, all contributions (paid or credited) from when they first enter insurable employment until pension age are taken into account.

The State assists those with caring roles to qualify for a State pension (contributory). The homemaker’s scheme makes qualification for State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in 1994, allows up to 20 years spent caring for children under 12 years of age or incapacitated people to be disregarded when a person’s social insurance record is being averaged for pension purposes. Given the valuable nature of the State pension (contributory), those who qualify under the homemaker’s scheme still need to fulfil the eligibility requirements for that scheme, and have at least 520 paid contributions over the course of their working lives.

However, for those with insufficient contributions to meet the requirements for a State pension (contributory), the State pension system provides alternative methods of support. If someone has been a carer for nearly all of their adult life and has paid little or no PRSI, they may qualify for a means tested State pension (non-contributory), the maximum personal rate for which is €219, which amounts to just over 95% of the maximum rate of the State pension (contributory). Alternatively, if their spouse or civil partner is in receipt of a State pension (contributory) they may instead qualify for an Increase for a Qualified Adult of up to €206.30, which is just under 90% of the maximum personal rate of the State pension (contributory).

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