Aisling Dempsey (Meath West, Fianna Fail)
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607. To ask the Minister for Employment Affairs and Social Protection the plans to examine what modifications or changes may be made to support women who currently fall outside the existing schemes to qualify for a State pension. [7908/25]

Dara Calleary (Mayo, Fianna Fail)
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The Department of Social Protection provides State Pension payments through the State Pension (Contributory), which is a contributory based payment based on a person's social insurance record and the State Pension (Non-Contributory) which is means-tested social assistance payment. To receive either a contributory or social assistance payment a person must qualify for that payment in their own right.

The State Pension (Contributory) is funded from the Social Insurance Fund through the social insurance contributions paid by workers and employers. The rate of payment reflects the number of social insurance contributions paid over a working life. To qualify for this payment a person requires 520 (equivalent to 10 years) paid contributions. Once a person has met the minimum requirement of 520 paid contributions, the rate of payment at which a person is paid the State Pension (Contributory) is currently calculated using two methods - the Yearly Average (YA) method that has been in place since the introduction of the contributory pension in 1961 and the Total Contributions Approach (TCA) that was introduced in 2018. The most beneficial payment is then awarded to the person. To qualify for a full rate pension under the YA method, a person must have an average of 48 contributions per year since they first entered insurable employment. To qualify for a full rate pension under the TCA method, a person must have 2080 paid and/or credited contributions (equivalent to 40 years).

Regardless of which approach is used, the current State Pension (Contributory) system gives significant recognition and support to those whose work history includes extended periods outside of paid employment, often to raise families or in a full-time caring role. This is done through PRSI credits under both approaches and through Homemaking Disregards under the YA and through HomeCaring Periods under TCA.

The Homemakers Disregard Scheme was introduced in April 1994 for use in the Yearly Average calculation. This allowed an applicant to apply under the Homemaker's Scheme for those years since April 1994 spent caring for children under age 12 or other dependent relatives to be disregarded in the calculation under the Yearly Average calculation method.

HomeCaring Periods were introduced under TCA. Up to 20 years of homecaring periods can be considered and this includes periods prior to 1994. Therefore, those who have a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of credits / homecaring periods, qualify for a maximum State Pension (Contributory) where they satisfy the other qualifying conditions for the scheme.

Since January 2024, long-term carers contributions (LTCCs) can be awarded to a person who has cared for an incapacitated person for a period of 20 years (1040 weeks) or more and these contributions can be used towards the calculation of their State Pension (Contributory) entitlement. This is done by attributing the equivalent of a paid contribution to long-term carers of incapacitated dependents to cover gaps in their contribution record. These long-term carers contributions will be treated the same as paid contributions for State Pension (Contributory) entitlement only and can, where there are gaps in paid contributions, be used to satisfy the minimum 520 qualifying contributions condition. LTCCs are available to those who reach 66 since 1 January 2024 and those already over aged 66 at that date.

For those who do not qualify for a State Pension (Contributory), or who only qualify for a reduced rate contributory pension based on their social insurance record, the State Pension (Non-Contributory) is available. This is a means-tested social assistance payment for people aged 66 and over, habitually residing in the State. As with all other social assistance schemes, payments are based on an income need. The means test used plays a critical role in ensuring that the recipient has a verifiable income need and that resources are targeted to those who need them most.

This combination of both the Contributory and Non-Contributory (social assistance) State pensions means that no person without a viable income need falls outside these schemes.

Any future changes to State Pension system would have to be considered in an overall policy and budgetary context and also in the context of the sustainability of the Social Insurance Fund.

Finally, the situation remains unchanged where a person's spouse or partner is in receipt of a State Pension (Contributory), they can also apply for an increase for a Qualified Adult, amounting up to 90% of a full rate State Pension (Contributory). This will be based on the Qualified Adult's means. The Increase for a Qualified Adult will automatically be paid directly to the adult dependant unless the adult dependant chooses to have it paid with the spouse's or partner's payment instead.

I trust this clarifies the matter for the Deputy.