Skip to main content
Normal View

State Pension (Contributory) Eligibility

Dáil Éireann Debate, Tuesday - 29 January 2013

Tuesday, 29 January 2013

Questions (473)

Bernard Durkan

Question:

473. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which persons who gave up employment to care for a relative have been credited with contributions for old age pension; and if she will make a statement on the matter. [4537/13]

View answer

Written answers

Those who leave the workplace for homemaking/caring purposes can, if eligible, avail of the homemakers scheme which helps to provide a higher rate of pension for those who meet the qualifying conditions. The Homemaker scheme comprises a period of disregard when calculating eligibility for a State pension so time taken out of the work, for those who qualify for the scheme, can be disregarded when assessment is being made for State pension. The scheme was introduced in and took effect from 1994 and allows up to 20 years spent caring for children under 12 years of age or incapacitated adults to be disregarded when a person’s social insurance record is being averaged for pension purposes. It impacts on women in particular as it assists them to qualify for a State pension (contributory) by recognising periods spent caring for children or incapacitated persons.

The homemaker disregard will not, of itself, qualify a person for a pension. Eligibility for the homemaker’s scheme is conditional on firstly meeting the standard qualifying conditions for State pension, which require a person to enter insurance ten years before pension age, pay a minimum of 520 contributions at the correct rate and achieve a yearly average of at least 10 contributions on their record from the time they enter insurance until they reach pension age, must also be satisfied.

The State pension is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. The Actuarial Review of the Social Insurance Fund published in 2012 examines the extent to which individuals receive value for money from the Fund in respect of their own and their employer’s contributions. The Review finds that those with short contribution histories fare better than those with full contribution histories and also that the Fund provides better value to female rather than male contributors.

Question No. 474 answered with Question No. 140.
Top
Share