Those who leave the workplace for homemaking/caring purposes can, if eligible, avail of the homemakers scheme which helps to provide a higher rate of pension for those who meet the qualifying conditions. The homemaker scheme comprises a period of disregard when calculating eligibility for a State pension so time taken out of the workforce for caring duties for those who qualify for the scheme, can be disregarded when assessment is being made for State pension.
The scheme was introduced in and took effect from 1994, and allows up to 20 years spent caring for children under 12 years of age or incapacitated adults to be disregarded when a person’s social insurance record is being averaged for pension purposes. It impacts on women in particular as it assists them to qualify for a State pension (contributory) by recognising periods spent caring for children or incapacitated persons. The homemaker disregard will not, of itself, qualify a person for a pension. Eligibility for the homemaker’s scheme is conditional on firstly meeting the standard qualifying conditions for State pension.
You may wish to note that for those who give up work to care, and the evidence suggests that it is mostly women, the recently published Actuarial Review of the Social Insurance Fund confirms that the Fund provides better value to women. The Review shows that those with lower earnings and those with shorter contribution histories, mostly women, have and will continue to obtain the best value for money from the Fund due to the redistributive nature of the Fund. For those who do not qualify for the State pension, the means non-contributory pension will continue to be available to those with an income need and details of same are available at www.welfare.ie.