Written Answers. - Social Insurance.
Question:
65
Dr. Upton
asked the
Minister for Social, Community and Family Affairs
his plans to provide social insurance credits to citizens engaged in full-time caring for children and for adults in full-time education and training.
[29715/00]
The position in relation to the award of social insurance credited contributions to adults who are engaged in full-time training and education is as follows. Persons who undertake training courses provided by or approved by FÁS, CERT, TEAGASC or Bord Iascaigh Mhara are insurable at PRSI class J and are covered for occupational injuries benefits. However, participants are awarded a class A social insurance credit in respect of the periods spent on these courses provided that the last paid contribution was not a voluntary contribution or at a modified rate. In the latter case, the credited contribution awarded will be confined to those benefits for which that last paid contribution is reckonable.
Students aged up to 23, who take up insurable employment on finishing full-time education, are awarded student credits which are reckonable for short-term benefits, such as unemployment, disability or maternity benefit.
In addition, participants on the back to education scheme, the vocational training opportunities scheme or any other approved course which qualifies for the retention of unemployment payments, who fulfil the above-mentioned criteria for the award of credited contributions, are awarded a class A social insurance credit in respect of periods spent on these courses.
I can assure the Deputy that this Government is committed to ensuring the broadest possible contributory pension cover to as many categories as possible, and recognises that people who leave the workforce to undertake family responsibilities in the home may lose out in maintaining their social insurance record.
For this reason, special arrangements are in place to assist those who work in the home to qualify for an old age contributory pension. From 6 April 1994, periods of time spent out of the workforce, including self employment caring either for children aged up to six years or incapacitated people are ignored or disregarded when calculating a person's pension entitlements. The Social Welfare Act, 1996, extended the homemaker provisions by increasing the age of children being cared for from six to 12 years.
For any year to be disregarded a homemaker must be out of the workforce for a complete year, 52 weeks, from 6 April 1994. The maximum period which can be disregarded is 20 years.
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.
I am strongly committed to converting the existing system of homemaker disregards, which help women who take time out from the paid workforce, into homemaker credits. This issue along with possible backdating of the arrangements, will be considered in the context of the second phase of the review of the qualification conditions for pensions which my Department will undertake in the new year. When implemented this measure should help many more people who take time out of the workforce for family reasons to qualify for pensions.
