Róisín Shortall (Dublin North West, Social Democrats)
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663. To ask the Minister for Employment Affairs and Social Protection if carers who are signing on for credits and who pay voluntary contributions will be guaranteed a full contributory pension when they reach retirement age; and if she will make a statement on the matter. [50391/17]

Regina Doherty (Meath East, Fine Gael)
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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. 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.

One of the conditions of the State pension contributory is that a person needs a minimum of 520 weekly contributions (i.e. 10 years) paid since entering insurable employment, i.e. between their 16th and 66th birthdays. If a person does not have this minimum number of contributions paid, they will not generally have an entitlement to this particular pension, either at a full or reduced rate.

Since 1961, when contributory pensions were introduced, the average contributions test has been used in calculating the rate of pension entitlement. Entitlement is banded, with the maximum rate payable to those with a yearly average of 48-52 contributions, and the minimum rate payable to those with a yearly average in the range of 10-14 contributions per year. Even if someone has only 10 years (520 weeks) of paid reckonable contributions between their 16th and 66th birthdays, they would generally qualify for a State pension (contributory), although the rate payable would vary depending on their circumstances.

Voluntary Contributions are designed to facilitate employees / self-employed persons who are no longer subject to compulsory PRSI, to pay contributions directly to the Department on a voluntary basis, in order to protect their future State Pension Contributory (SPC), Widow(er)’s Contributory Pension and Guardian’s Contributory Payment entitlements.

There are a number of qualifying conditions attached to the Voluntary Contribution Scheme. In order to become a Voluntary Contributor a person must (i) have a minimum of 260 to 520 Contributions paid – dependant on the period he or she wishes to pay for, and (ii) apply within 60 months of the end of the year in which he or she last paid or was credited a contribution.

My Department will take into account all relevant contributions, paid or credited, as well as the time frame involved, when making a decision on an individual’s level of entitlement to the State Pension (contributory).

I hope this clarifies the matter for the Deputy.