Written answers

Thursday, 1 October 2015

Department of Social Protection

State Pension (Contributory) Eligibility

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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46. To ask the Tánaiste and Minister for Social Protection in relation to contributory State pensions, the cost in 2016 of allowing persons to disregard up to 200 pre-1994 A1 pay related social insurance payments for the purpose of calculating their date of entry to the workforce; and if she will make a statement on the matter. [33811/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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State pension (contributory) is based on the PRSI contributions paid or credited by the person over their working life, and the level of entitlement depends on their yearly average number of contributions.

The homemaker’s scheme was introduced in 1994 to make qualification for State pension contributory (SPC) easier for those who take time out of the workforce for caring duties. The scheme 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 calculated for pension purposes. The effect of this is to reduce the number of years by which the person’s contributions are divided, thereby increasing their yearly average, making it easier for them to qualify for a maximum rate SPC. However, it is important to note that the homemaker’s scheme will not, of itself, qualify a person for a SPC. The standard qualifying conditions for the SPC must also be satisfied. These require a person to enter insurable employment at least ten years before pension age, pay a minimum of 520 contributions at the correct rate (credited contributions do not satisfy this condition) and achieve a yearly average of at least 10 contributions paid or credited on their record.

The information requested by the Deputy is not compiled by my Department, and is not therefore available.

There are no plans to introduce a disregard in respect of parts of a person's insurance record to enable them to qualify for SPC.

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