Written answers

Tuesday, 13 November 2018

Department of Employment Affairs and Social Protection

Pension Provisions

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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100. To ask the Minister for Employment Affairs and Social Protection the supports provided to foster parents particularly in the area of pensions in which foster parents would like their role as foster parents recognised as work for pension purposes; and if she will make a statement on the matter. [46757/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I am informed that Foster Parents are paid a weekly allowance by Tusla of €325 for each child under the age of 12, and €352 for each child over the age of 12. These payments are not taxable, are not subject to PRSI deductions, and are not taken into account for the purposes of means tests administered by my Department, and there are no plans to change this. As a consequence, a Foster Parent with no other income may have no PRSI contributions paid during the period they were fostering. Foster Parents who are working or self-employed pay PRSI contributions in respect of that work and qualify for social welfare entitlements on that basis.

The home-makers scheme makes qualification for a higher rate of State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect for periods from 1994, allows up to 20 years spent caring for children under 12 years of age (or caring for incapacitated people over that age) to be disregarded in the calculation of the yearly average of the pensioner. This will generally have the effect of increasing the yearly average of the pensioner, and may result in a higher rate of pension, depending on their circumstances.

Under the interim Total Contribution Approach (TCA) for those pensioners affected by the rate band changes in 2012, HomeCaring periods will be available to those who looked after children up to 12 years of age or older where fulltime care and attention was required (to a maximum of 20 years for all credits and homecaring periods). There is no post-1994 restriction on the years during which this caring period will have taken place.

Claims continue to be subject to the standard qualifying conditions for State pension contributory also being satisfied, including the requirement that 520 contributions be paid.

Foster parents are entitled to the benefits of the existing homemakers scheme and it is planned this would continue for the new HomeCaring periods under TCA, on the same basis as other homemakers and carers, and will qualify if the carer is in receipt of Child Benefit. If the foster parent is not in receipt of Child Benefit they can still qualify for the home-makers scheme or HomeCaring periods if the caring periods are confirmed by TUSLA (these are cases where caring is for a short period of time).

Accordingly, the current system and the interim TCA system which will be implemented shortly both provide for times spent caring to be taken into consideration in the calculation of pensions.

I hope this clarifies the matter for the Deputy.

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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101. To ask the Minister for Employment Affairs and Social Protection the status of her plans to re-examine the situation in which women who were in the workforce and left in earlier years for family duties are not in a position to receive the full State pension (contributory) when they reach retirement age; and her further plans to address this situation. [46754/18]

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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110. To ask the Minister for Employment Affairs and Social Protection the measures she will take to ensure equality in the State pension (contributory) scheme; when pensioners affected by current rules can expect to see those measures enacted; and if she will make a statement on the matter. [46846/18]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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117. To ask the Minister for Employment Affairs and Social Protection the extent to which progress continues to be made in addressing the issue by which women for one reason or another have been deprived of contributory pensions having retired from the workplace while raising their families due to the marriage ban and who have made a major contribution to society in the course of their working lives; if their cases are being re-examined with a view to crediting them with sufficient contributions to enable them qualify for the State or retirement pension; and if she will make a statement on the matter. [46793/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 101, 110 and 117 together.

On 23 January last, the Government agreed to allow pensioners, born on or after the 1st September 1946, affected by the 2012 changes in rate bands, to have their state pension (contributory) entitlement calculated under an interim “Total Contributions Approach” (TCA). The changes also provide for up to 20 years of home caring periods in the calculation of that entitlement, for those who took time out of the workplace for parenting children under age 12, or individuals who needed increased levels of care.

The changes apply to those who reached pension age on or after 1stSeptember 2012 who were awarded less than maximum rate, on post Budget 2012 rate bands. The changes do not apply to anyone already entitled to maximum rate state pension (contributory).

Currently there are approximately 79,000 pensioners in this category and my Department is now in the process of issuing Information Letters to them.

Work on examination of the social insurance records of the pensioners concerned commenced in September. As social insurance records are unique to individual pensioners, this manual examination phase is expected to continue to the end of the year. To date, over sixty temporary staff members have been recruited to work on this phase. Further recruitment will take place in January 2019 when the first pension reviews are expected to get under way and it is anticipated that the first review outcomes will be notified to pensioners during Quarter 1 2019.

Payment of increases, where awarded, will be made immediately after an individual's review is completed. Where an increase is awarded, it will be backdated to 30 March 2018, or the person's 66th birthday if later, and arrears paid. If a pensioner does not qualify for an increased rate, they will continue to receive their existing rate of entitlement.

I hope this clarifies the matter for the Deputies.

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