Vol. 504 No. 2
249 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs if he will change the special arrangements for home makers in order that the contribution period spent out of the workforce caring for children or incapacitated people may be disregarded for the purposes of maternity benefit and other short-term benefits as well as for old age pension purposes. [11304/99]
The Government recognises the fact that people who leave the workforce to undertake family responsibilities in the home may, in some cases, lose out in maintaining their social insurance record. The main difficulties arising in this regard relate to pension entitlements. In order to qualify for contributory pensions people need to maintain a certain yearly average number of contributions over their working lives. Periods spent out of the workforce can therefore, dilute a person's yearly average, resulting in a reduced pension being paid or, in some cases, no pension entitlement.
Special arrangements are in place (known as homemakers disregards) to help people who work in the home to qualify for the old age (contributory) pension. Years spent out of the workforce caring either for children up to the age of 12 or incapacitated people may be disregarded in calculating the person's yearly average number of contributions. A maximum of 20 years may be disregarded.
Many such people also benefit from a new pro rata pension which was introduced in November 1997 so that people who pay social insurance for a reasonable period of time will qualify for an old age (contributory) pension. A yearly average of between 15 and 19 contributions gives a pension of 75 per cent of the maximum rate, while an average of between ten and 14 gives a pension of 50 per cent. To qualify a person also needs to have a minimum of 260 paid contributions.
Unlike pensions, entitlement to short-term payments, such as disability, maternity and unemployment benefits, is determined by reference to the level of contributions paid in the recent past. Accordingly, a person who has been out of the workforce for a number of years can re-establish entitlement to short-term benefits after a period of time back in the workforce, e.g. nine months in the case of maternity benefit. However problems can arise, in certain cases, in establishing entitlement to short-term benefits so a number of improvements are being implemented in this area. For instance, last December's budget provided for the award of credited contributions to claimants of carer's allowance who have left insurable employment to engage in caring duties. Credited contributions preserve a person's existing social insurance entitlements for the period during which they are awarded, including entitlement to short-term benefits such as maternity benefit.
Furthermore, in recognition of their caring role, the current rule requiring a person to have a record of PRSI contributions within the previous two years in order to qualify for the award of credited contributions is being waived where claimants of carer's allowance have been in receipt of homemakers disregards immediately prior to claiming that allowance. This measure will protect the position of people who did not originally give up work to become carers, but may have qualified for homemakers disregards due to child minding duties and who subsequently became carers. Credited contributions are also awarded during periods of parental leave taken by either parent to care for young children.
