In recent years more flexibility has been introduced into the qualifying conditions for the old age contributory pension scheme, including a reduction in the average number of yearly contributions required for a minimum pension to ten, the introduction of pro rata pensions for those with mixed rate insurance records and the special pension for those with pre-1953 insurance contributions. These measures are of benefit to many women who have gaps in their PRSI records due to working in the home looking after children, or caring full time for an elderly or incapacitated person.
Where a person qualifies for a reduced rate pension, it is possible for them to opt for a payment as a qualified adult on their spouse's or partner's pension if that would be more beneficial for the household income. The homemaker's scheme was introduced in 1994 and allows for periods spent out of the workforce caring for children or sick relatives to be disregarded when a person's contribution record is being averaged for pension purposes. This scheme is at present being reviewed as part of an overall review of the qualifying conditions for the old age contributory and retirement pension, the first phase of which was published in August 2000. It is expected that the phase 2 report will be finalised shortly. Changes to the homemaker's scheme will be considered in the context of the findings of the phase 2 report, the overall costs involved and the resources available for future budget improvements.
Other work under way in this area includes the report of the PPF working group on administrative individualisation, which is currently examining the issues of administrative individualisation. Following consideration of this report, it is hoped that arrangements can be put in place so that as many qualified adults as possible can receive their payments directly. As announced in last year's budget, I intend to increase the payment for qualified adults, aged 66 or over, to the same level as the personal rate of the old age non-contributory pension. This process commenced in budget 2000 with special increases of €19.05 granted. In budget 2002 increases of up to €12.70 were granted to qualified adults over 66 years of age.
