Fiona O'Loughlin (Kildare South, Fianna Fail)
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573. To ask the Minister for Employment Affairs and Social Protection the action being taken to provide pension equality for those who were historically penalised for being stay-at-home parents; and if she will make a statement on the matter. [5318/18]

Regina Doherty (Meath East, Fine Gael)
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On 23January, the Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated by a new "Total Contributions Approach" (TCA) which will include up to 20 years of a new HomeCaring credit. This approach is expected to significantly benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. It will make it easier for pensioners assessed under the yearly average model, to qualify for a higher rate of the State Pension (contributory). The TCA will ensure that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines a final pension outcome.

Under the new arrangements a person who reached pension age after 1 September 2012 and has a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of the new HomeCaring credits, will qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. Crucially, unlike the existing Homemakers disregard system, periods of home-caring before that scheme was introduced in 1994 may be recognised under the new scheme.

Up to 10 years of other credits, for example when unemployed or ill, may also be used, subject to the total number of credits not exceeding 20 years. So, for example, a person might receive a maximum pension based on 20 years paid PRSI contributions, 5 years jobseeker credits, and 15 years HomeCaring Credits, over a 50 year period.

The new TCA for pensioners assessed under the 2012 rate band changes, comes into effect from 30 March 2018. Pensioners do not need to contact the Department at this juncture. Instead, the Department will invite over 40,000 pensioners, who were assessed under the current rate bands in place since 2012, to have their pensions recalculated under TCA to determine if they qualify for a higher rate of entitlement. However, as it will take time to design and set up administrative processes, and the necessary IT systems, the Department expects to send out these invitations from Quarter 4 of 2018 and to begin payments, including arrears for any period from 30 March 2018, from Quarter 1 of 2019.

I hope this clarifies the matter for the Deputy.

Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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574. To ask the Minister for Employment Affairs and Social Protection if persons who were receiving a prescribed relative allowance, PRA, for providing full-time care to a relative, which was subsequently replaced by a carer's allowance, will be awarded home caring credits for the period that they were receiving the PRA under the new total contributions approach for calculating pensions in recognition of their caring role; and if she will make a statement on the matter. [5342/18]

Regina Doherty (Meath East, Fine Gael)
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The Prescribed Relatives Allowance preceded the introduction of the Carer's Allowance scheme. It was payable in respect of a relative (specified in legislation) of a social welfare pensioner, who was living with and providing full-time care and attention to the pensioner. Initially, the allowance was paid by way of an increase in the pension payment. In 1989 provision was made for direct payment of the allowance to the relative providing the care. Following the introduction of the Carer's Allowance in 1990, relatives of pensioners in receipt of prescribed relatives allowance, were invited to apply for Carer's allowance. Where they applied, and it was to their financial advantage, arrangements were made to make payment of Carer's allowance direct to the relative providing full-time care and attention to the pensioner.

The Total Contributions Approach (TCA) to qualifying for the State Pension (contributory) announced on 23 January where the Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated by a new "Total Contributions Approach" (TCA) which will include up to 20 years of a new HomeCaring credit. Unlike the current Homemakers scheme, this credit will apply to periods both before and after 1994. This approach is expected to significantly benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. It will make it easier for such pensioners to qualify for a higher rate of the State Pension (contributory). The TCA will ensure that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines a final pension outcome, and it also acknowledges, for the first time, the contribution made by home-carers in the period before 1994.

While details of the TCA model have not been finalised ahead of consultation and legislation later this year, it is expected that former recipients of the Prescribed Relatives Allowance may be considered within the context of HomeCaring credit awards.

The new TCA for pensioners assessed under the 2012 rate band changes, comes into effect from 30 March 2018. Pensioners do not need to contact the Department at this juncture. Instead, the Department will invite over 40,000 pensioners, who were assessed under the current rate bands in place since 2012, to have their pensions recalculated under TCA to determine if they qualify for a higher rate of entitlement. However, as it will take time to design and set up administrative processes, and the necessary IT systems, the Department expects to send out these invitations from Quarter 4 of 2018 and to begin payments, where applicable, including arrears for any period from 30 March 2018, from Quarter 1 of 2019.

I hope this clarifies the position for the Deputy.