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Pension Provisions

Dáil Éireann Debate, Tuesday - 13 November 2018

Tuesday, 13 November 2018

Questions (100)

Martin Heydon

Question:

100. Deputy Martin Heydon asked the Minister for Employment Affairs and Social Protection the supports provided to foster parents, particularly in the area of pensions, in which foster parents would like their role as foster parents recognised as work for pension purposes; and if she will make a statement on the matter. [46757/18]

View answer

Written answers

I am informed that Foster Parents are paid a weekly allowance by Tusla of €325 for each child under the age of 12, and €352 for each child over the age of 12. These payments are not taxable, are not subject to PRSI deductions, and are not taken into account for the purposes of means tests administered by my Department, and there are no plans to change this. As a consequence, a Foster Parent with no other income may have no PRSI contributions paid during the period they were fostering. Foster Parents who are working or self-employed pay PRSI contributions in respect of that work and qualify for social welfare entitlements on that basis.

The home-makers scheme makes qualification for a higher rate of State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect for periods from 1994, allows up to 20 years spent caring for children under 12 years of age (or caring for incapacitated people over that age) to be disregarded in the calculation of the yearly average of the pensioner. This will generally have the effect of increasing the yearly average of the pensioner, and may result in a higher rate of pension, depending on their circumstances.

Under the interim Total Contribution Approach (TCA) for those pensioners affected by the rate band changes in 2012, HomeCaring periods will be available to those who looked after children up to 12 years of age or older where fulltime care and attention was required (to a maximum of 20 years for all credits and homecaring periods). There is no post-1994 restriction on the years during which this caring period will have taken place.

Claims continue to be subject to the standard qualifying conditions for State pension contributory also being satisfied, including the requirement that 520 contributions be paid.

Foster parents are entitled to the benefits of the existing homemakers scheme and it is planned this would continue for the new HomeCaring periods under TCA, on the same basis as other homemakers and carers, and will qualify if the carer is in receipt of Child Benefit. If the foster parent is not in receipt of Child Benefit they can still qualify for the home-makers scheme or HomeCaring periods if the caring periods are confirmed by TUSLA (these are cases where caring is for a short period of time).

Accordingly, the current system and the interim TCA system which will be implemented shortly both provide for times spent caring to be taken into consideration in the calculation of pensions.

I hope this clarifies the matter for the Deputy.

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