Dáil Éireann debate -
Tuesday, 30 May 2000

Vol. 520 No. 1

Written Answers. - Pension Provisions.

Pat Rabbitte

Question:

44 Mr. Rabbitte asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that women who were forced to give up their jobs due to the marriage bar are now without adequate PRSI contributions to qualify for a contributory pension; the plans, if any, he has to change pension rules to acknowledge the discriminatory nature of the marriage ban and to ensure income adequacy for women in older age; and if he will make a statement on the matter. [15031/00]

Brian O'Shea

Question:

72 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the terms of reference of the proposed review of measures to ensure that spouses, mainly women, who take time out of paid employment for caring duties in the home, do not lose out on pension entitlements; when the review is expected to be completed; and if he will make a statement on the matter. [15018/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

I propose to take Questions Nos. 44 and 72 together.

This Government is committed, as set out in An Action Programme for the Millennium, to providing the mechanism to allow women, who take time out for family reasons, to continue contributions for pension purposes, in recognition of the fact that women who leave the workforce to undertake family responsibilities in the home face difficulties in maintaining their social insurance record.

Certain measures have already been introduced to address this issue. Special arrangements are in place to help people who work in the home to qualify for an old age contributory pension. From 6 April 1994, years spent out of the workforce caring either for children up to the age of six, increased to age 12 from 6 April 1995, or incapacitated people may be disregarded in calculating the person's yearly average number of contributions for old age contributory pension purposes. A maximum of 20 years may be disregarded in this way. Provision is also made for the award of credited contributions in the year in which a person commences or ceases to be a homemaker. In addition, earnings of up to £30 per week where a person is engaged in part-time employment outside the home are also permitted.

Thepro rata pensions which I introduced in November 1997 and the new arrangements to take account of pre-1953 contributions, which came into effect earlier this month, will be of benefit to many women who have gaps in their PRSI records due to working in the home.

However, I recognise that issues remain to be addressed in this area and, as I have stated, I have ordered a review of this issue. Accordingly, the review of the existing arrangements for homemakers will be undertaken as part of the ongoing review of eligibility conditions for contributory old age pensions. I have asked that proposals be brought forward which I will consider in a budgetary context.