Brendan Griffin
Question:81. Deputy Brendan Griffin asked the Tánaiste and Minister for Social Protection if lifelong carers will be afforded contributory pension recognition; and if she will make a statement on the matter. [35299/14]
View answerTuesday, 23 September 2014
Questions (81)
Written answers
When assessing whether an individual is entitled to a State pension, and to ensure that they can maximise such entitlement, all contributions (paid or credited) from when they first enter insurable employment until pension age are taken into account
Credited contributions (credits) are social insurance contributions designed to protect the social insurance entitlement record of insured workers who are not in a position to make PRSI contributions.
Credits are awarded in circumstances such as unemployment or illness, and their purpose is to help protect the social insurance entitlements of insured persons during periods when they may not be in a position to pay contributions.
Credits are awarded to recipients of Carer's Allowance in the following circumstances:
- if the claimant was employed and paid PRSI contributions prior to receiving Carer's Allowance s/he may be entitled to credits. If, however, there is a gap of two years in the claimant's insurance record, credits are not valid until at least 26 PRSI contributions have been paid.
- if the claimant was in receipt of Jobseeker's Allowance (provided s/he has at least one paid Class A PRSI contribution) Jobseeker's Benefit or Illness Benefit immediately prior to claiming Carer's Allowance.
In addition under the Homemakers Scheme, which was introduced in 1994, a person who gives up work to take care of a child under age 12 or an incapacitated person over age 12 can be classified as a homemaker. Complete years spent out of the workforce looking after a child or an incapacitated person, are disregarded when working out entitlement to a State Pension (Contributory).
This scheme was introduced to make qualification for State pension (contributory) easier for those who take time out of the workforce for caring duties - up to 20 years spent caring for children under 12 years of age and/or an incapacitated person can be disregarded.
It is planned that a total contributions approach to pension qualification will replace the current average contributions test for State pension (contributory). The proposed date for the introduction of this change is 2020, but this may be subject to change.
The total contributions approach (whereby the pension payment will be based on the number of contributions paid and credited) will remove the current anomaly whereby people can achieve a higher average contribution rate, and thus a higher level of pension, even where they have a lower total number of contributions paid. This move will bring more transparency to the eligibility for pension.
Question No. 82 withdrawn.