Thursday, 3 May 2018
Department of Employment Affairs and Social Protection
State Pension (Contributory)
28. To ask the Minister for Employment Affairs and Social Protection the circumstances under which or the reason a person can avail of ten years credited contributions as distinct from the 20 years allowed for homemaking and caring duties regarding the forthcoming total contributions approach for the contributory pension; and if she will make a statement on the matter. [19252/18]
PRSI contributions can be credited to people in a number of contexts, for example when in receipt of a Jobseekers or Illness benefit payments. Where applicable, these may be used towards PRSI-based social protection payments, including the State pension contributory (SPC). Not all classes of paid or credited contributions are reckonable for a State pension contributory, e.g., those of a civil servant who paid the reduced Class B rate would provide no SPC coverage.
Under the interim Total Contributions Approach announced in January, a person who reached pension age after 1 September 2012 (i.e. who is among those affected by the new ratebands introduced from that date) and who has a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of credits, will qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. Up to 20 years of HomeCaring credits, and/or 10 years of other qualifying credits, for example when unemployed or ill, may 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.
I hope this clarifies the matter for the Deputy.