Dáil Éireann debate -
Thursday, 24 May 2001

Vol. 537 No. 1

Written Answers. - Social Welfare Benefits.

Michael D. Higgins

Question:

35 Mr. M. Higgins asked the Minister for Social, Community and Family Affairs if he will report on the review of the homemaker's scheme and on the second phase of the review of the qualifying conditions for old age contributory and retirement pensions. [15280/01]

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

In August 2000 I launched the report on phase 1 of the review of the qualifying conditions for the old age contributory and retirement pensions. This report identified the key issues in relation to qualification conditions and set out suggested guiding principles and outlines a framework for reform. One of the recommendations involves a change in the qualification conditions from the current one based on average contributions to a system based on the number of contributions paid or credited over a person's working life. This represents a significant change in approach for overall pensions policy. However, such a system would be more transparent, simpler and more easily understood by the general public.

The report also recommended that the homemaker's scheme, which is designed to help women who take time out of the paid workforce to care for children or sick relatives to qualify for a pension, be reviewed. Under the scheme the time spent caring since 1994 is disregarded when average contributions are being assessed for pension purposes. A working group comprising officials of my Department and the Department of Finance is undertaking the second phase of this review. It is expected that the phase 2 report will be available for consideration in the context of budget 2002.