Brendan Griffin (Kerry, Fine Gael)
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167. To ask the Minister for Social Protection the reason the date of entry into social insurance is used in the assessment of State pension eligibility for women who left the Civil Service when they married and did not make contributions pre-1991; if this policy will be reviewed; and if he will make a statement on the matter. [14554/17]

Leo Varadkar (Dublin West, Fine Gael)
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There are two State pensions. Firstly, the State pension non-contributory is a means tested pension. Secondly, the State pension (contributory) is paid from the Social Insurance Fund. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives.

To ensure that the individual can maximise their entitlement to a State pension, all contributions paid or credited over their working life from when they first enter insurable employment until pension age are taken into account when assessing their entitlement and the level of that entitlement. Since 1961, when contributory pensions were introduced, the average contributions test has been used in calculating pension entitlement. Once over 16 years of age, the date a person enters into insurable employment is the date used for averaging purposes.

Using another date would require legislative provision, and introducing such legislation would mean a number of decisions would have to be made, notably (a) what date should be used (preferably it would be a date that was not considered arbitrary)? (b) would the contributions paid before that date be ignored in the calculation of the yearly average, and would there be relief for such pensioners if this change reduced their entitlements? and (c) if there was a significant net benefit for pensioners as a result of this change, what would be the source of that funding (e.g. higher PRSI/taxes, or a lower core rate of the pension generally)?

The ‘marriage bar’ describes a rule that existed in most of the public service and some private sector employments, where women were required to leave their employment upon marriage. This practice was abolished in 1973 when Ireland joined the EEC. As it was a rule rather than law, married women affected by it could take up other employment, and many did. It is worth remembering that most public servants recruited prior to 1995 pay a reduced PRSI rate of 0.9% and so they are not generally entitled to the State pension. Therefore, in such cases, the marriage bar would not be expected to have impacted on State pension entitlement, as they would not have qualified for that payment had they remained in public sector employment. Instead, by impacting upon their continuing public service employment, the marriage bar’s pension implications, where they exist, more generally relate to a person’s eventual entitlement to a Public Service pension. Any questions regarding this issue are a matter for the Minister for Public Expenditure and Reform.

Where someone does not qualify for a full rate contributory pension there are supports available in the overall State pension system which assists qualification for a contributory payment, based on factors such as the contributions made by their spouse, and/or other factors likely to impact upon their needs. These include –

- The Homemaker’s scheme, which was introduced to make qualification for State pension (contributory) easier for those who take time out of the workforce for caring duties. This applies to periods following the introduction of that scheme in 1994.

- Widows generally qualify for a full-rate Widows Contributory Pension.

- Increases for Qualified Adults.

- Credits for periods of unemployment and illness.

For those with insufficient contributions to meet the requirements for a State pension (contributory), they may qualify for a means tested State pension (non-contributory), the maximum personal rate for which is €227 (over 95% of the maximum rate of the contributory pension).

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