Heather Humphreys (Cavan-Monaghan, Fine Gael)
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This Government acknowledges the important role that family carers play and is fully committed to supporting them in that role. Accordingly, The State Pension system currently gives significant recognition to those whose work history includes an extended period outside of paid employment, often to raise families or in a full-time caring role.

Despite these measures, some long-term carers of incapacitated dependants may still face barriers in accessing the State Pension (Contributory). This was recognised by the Pension Commission in its report which recommended that long-term carers should be given access to the State Pension (Contributory) and defined long-term caring as caring for more than 20 years. It was also recognised that long-term carers may for example have difficulty establishing the minimum number of 10 year’s paid contributions.

In September 2022, I announced a series of landmark reforms to the State Pension system in response to the recommendations from the Pensions Commission. This set of measures represents the biggest ever structural reform of the Irish State Pension system.

As the Deputy is aware, one of the key measures introduced from the 1st January 2024 is the introduction of long-term carer's contributions. Long-term carer's contributions can be awarded to a person who has cared for an incapacitated person for a period of 20 years or more. These contributions will be treated the same as paid contributions for State Pension (Contributory) entitlement only and can be used to satisfy the minimum 520 contributions condition.

My Department launched an online system for people to register for long term caring contributions. If a person has cared for less than 20 years (1040 weeks), the period will be registered and used for State Pension (Contributory) if/when they have additional periods which accumulate to 20 years or more. The care does not have to be provided for consecutive years. It can be a combination of any periods during the working life where a person was unable to be in paid employment for more than 18.5 hours per week due to caring responsibilities.

A person with less than 20 years caring may be entitled to avail of home caring periods or the homemakers scheme, subject to existing qualification conditions of having 520 paid contributions.

Also, under the new reform measures announced is the introduction of a flexible pension system in Ireland. Under this new system, from January 2024, people will still be able to retire at 66 and draw-down their pension in exactly the same way as they can today. In addition, there will be new flexibility for those reaching State Pension age, so that people may choose to defer their pension, work longer, and receive a higher pension payment, if they wish.

In the case of a person who reaches age 66 and does not have sufficient contributions to qualify for a full pension, they will now have the option to work for longer to build up additional entitlements.

If a person has less than 10 years PRSI reckonable paid contributions, they may be able to use this period of deferral to establish entitlement. A person will also have the option to continue working between age 66 and 70 and receive an actuarially based increase in their weekly payment rate, should they choose to defer their State Pension (Contributory).

Finally, the situation remains unchanged where a person reaches State Pension age and does not satisfy the conditions to qualify for State Pension (Contributory) or qualifies for less than the maximum rate, they may instead qualify for one of the following:

• The means-tested State Pension (Non-Contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the State Pension (Contributory); or
• An increase for a qualified adult (based on their own means), amounting up to 90% of a full rate State Pension (Contributory) where their spouse has a contributory pension; or
• Where their spouse/civil partner is deceased, a widow's/widower's/civil partner's contributory pension, which they may claim either based on their spouse's or their own social insurance record. The qualifying conditions for this require fewer contributions paid (260) than the SPC for the maximum personal rate for those aged 66 or over.

I hope this clarifies the matter for the Deputy.