Robert Troy (Longford-Westmeath, Fianna Fail)
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363. To ask the Minister for Employment Affairs and Social Protection further to Parliamentary Questions Nos. 605 and 606 of 2 November 2021, the number of new entrants to the State pension (contributory) post 1 September 2012 and prior to 29 March 2018 who were unaffected by the September 2012 changes; if the carer credit is the same as an earned credit for the purpose of a State pension (contributory) calculation other than there is a cap of 1,040 on carer credits. [59983/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Applicants for State pension (contributory) with a yearly average of 40 or above were not affected by the September 2012 changes.

Applicants who were assessed with a yearly average within the 40-47 rate band continued to have entitlement to 98% of the maximum rate of State pension (contributory). Applicants assessed with a yearly average of 48 or over continued to qualify for the maximum rate of State pension (contributory). On this basis, according to the records of my Department there were 103,300 applicants who reached pension age between 1 September 2012 and 29 March 2018 whose rate of pension entitlement was not affected by the September 2012 rate band changes.

A carer’s credit is awarded, whereas an earned credit is earned. The State pension system gives significant recognition to those whose work history includes an extended period of time outside the paid workplace, often to raise families or in a full-time caring role, through the award of credits and/or the application of the Homemaker’s Scheme (in the Yearly Average method for pension rate calculation) and/or the application of HomeCaring Periods (in the Aggregated Contribution Method of pension calculation).

PRSI credits are awarded to recipients of Carer’s Allowance and Carer’s Benefit where they have an underlying entitlement to credits. Credits are also awarded to workers who take unpaid Carer’s Leave from work.

The Homemakers Scheme was introduced with effect from 6 April 1994 to help homemakers and carers qualify for State pension (contributory). This scheme is applied as part of the yearly average calculation to those with eligibility from that date (unlike HomeCaring Periods in the recently-introduced Aggregated Contributions Method). The Homemakers’ Scheme allows up to 20 years (since 6 April 1994) spent caring for children under 12 years of age or for an incapacitated person(s) to be disregarded in calculating a person's yearly average number of contributions and credits, and for homemaker credits to be awarded for homemaking periods of less than a full contribution year.

HomeCaring Periods are included in the Aggregated Contributions Method, also known as the interim Total Contributions Approach, introduced by Government in 2018. This scheme makes it easier for a home carer to qualify for a higher rate of State Pension (Contributory). HomeCaring Periods can only be used under the Aggregated Contributions Method of pension calculation. HomeCaring Periods may be awarded for each week not already covered by a paid or credited social insurance contribution.

For the Aggregated Contributions Method, an applicant’s record is taken to mean the aggregate of paid contributions, credited contributions and HomeCaring Periods. There is a cap of 1,040 on the combined amount of HomeCaring Periods and credited contributions that can be used in calculating pension entitlement. Within this overall cap of 1,040 HomeCaring Periods and credited contributions, a maximum of 520 credited contributions can be used.

I hope this clarifies the matter.