Dáil Éireann Debate, Wednesday - 13 May 2020
1204. Deputy Sean Fleming asked the Minister for Employment Affairs and Social Protection if the period a person spends on homekeeping duties will be taken into consideration to reach the 520 contributions that are necessary to obtain the State pension (contributory); and if she will make a statement on the matter. [5182/20]
View answerIn April 2012, the number of paid PRSI contributions required to qualify for a State Pension (Contributory) increased from 260 to 520. The enabling legislation was contained in the Social Welfare Act 1997.
Given that the actuarial value of the State Pension is estimated at over €300,000, it is considered reasonable to require people who claim a contributory pension to have made at least 10 years of paid contributions over 50 years of a working age life.
On 23 January 2018, the Government agreed to a proposal that allows pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated on an interim Total Contributions Approach basis. This approach includes provision for up to 20 years spent homecaring to be taken into account. The period a person spends on homecaring duties is not taken into consideration to reach the 520 paid PRSI contributions threshold.
The Total Contributions Approach (TCA), when it is introduced, is intended to be a fairer and more transparent system where the person’s lifetime contribution will be more closely reflected in the benefit received. Having carefully examined the outputs of a consultation process, officials in the Department are designing the scheme. It is anticipated that there will be significant recognition for homecaring periods in the new model. The intention is to bring a proposal to Government setting out that design in the near future.
For those with insufficient contributions to meet the requirements for a State Pension (Contributory), they may qualify for a means tested State Pension (Non-Contributory), the maximum personal rate for which is currently €237 (over 95% of the maximum rate of the contributory pension). This rate of payment does not include rent allowance, household benefits or fuel allowance. Alternatively, if their spouse is a State pensioner and they have significant household means, their most beneficial payment may be an Increase for a Qualified Adult, based on their personal means, and amounting up to 90% of a full contributory pension.
I hope this clarifies the matter for the Deputy.
