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State Pensions

Dáil Éireann Debate, Tuesday - 22 March 2022

Tuesday, 22 March 2022

Questions (70)

Claire Kerrane

Question:

70. Deputy Claire Kerrane asked the Minister for Social Protection if consideration is being given to including foster carers under the State pension for long-term carers recommendation from the Pension Commission report; and if she will make a statement on the matter. [14841/22]

View answer

Written answers

The Pensions Commission’s Report was published on 7th October 2021.  It established that the current State Pension system is not sustainable into the future and that changes are needed.  The report set out a wide-range of recommendations in relation to the State Pension system and Social Insurance Fund, including enhanced pension provision for long-term carers (who are caring for over 20 years).

Subject to the standard qualifying conditions for State Pension (Contributory) also being satisfied, the State pension system already provides significant recognition to those whose work history includes an extended period of time outside the paid workplace, often to raise families or in a full-time caring role.

This is provided through the award of credits and/or the application of the Homemaker’s Scheme (under the Yearly Average method for payment calculation) and/or the application of HomeCaring Periods (under the Aggregated Contribution Method, also known as the interim Total Contributions Approach). 

Details of these are: 

- Credits – PRSI Credits are awarded to recipients of Carer’s Allowance (and Carer’s Benefit) where they have an underlying entitlement to credits.  Credits are also awarded to workers who take unpaid Carer’s Leave from work.

- The Homemaker’s Scheme - The scheme, which was introduced with effect from 1994, is designed to help homemakers and carers qualify for State Pension (Contributory).  The Scheme, which allows periods caring for children or people with a caring need to be disregarded (from 1994), can have the effect of increasing a person's Yearly Average.

- HomeCaring Periods – HomeCaring Periods may be awarded for each week not already      covered by a paid or credited social insurance contribution (regardless of when they occurred) to a maximum of 20 years.  HomeCaring Periods can only be used under the Aggregated Contribution Method (also known as the Interim Total Contributions Approach) of pension calculation. 

- Since April 2019, all new State (Contributory) Pension applications are assessed under all possible rate calculation methods, including the Yearly Average and the Total Contributions Approach, with the most beneficial rate paid to the pensioner.  The elements which make up each method are set out in legislation. 

- Foster parents are entitled to the benefits of the Homemakers Scheme or HomeCaring Periods, on the same basis as other homemakers, and will qualify if the carer is in receipt of Child Benefit.  If the foster parent is not in receipt of Child Benefit s/he can still qualify for the Homemaker’s scheme or HomeCaring Periods provided the caring periods are confirmed by TUSLA (these are cases where caring is for a short period of time).

- It should be noted that if a person does not satisfy the conditionality to qualify for State Pension (Contributory), s/he may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is over 95% that of the maximum rate of the State Pension (Contributory).  Alternatively, if his/her spouse is a State pensioner and has significant household means, his/her most beneficial payment may be an Increase for a Qualified Adult, based on his/her personal means, and amounting to up to 90% of a full contributory pension. 

- In the interests both of older people and future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically.  My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system.  The Joint Oireachtas Committee on Social Protection and the Commission on Taxation and Welfare have submitted their views on the recommendations.  These various views will be considered carefully as part of the Government's deliberations.

- I think it is really important that we complete that work before reaching conclusions on any one recommendation, such as the recommendations related to long-term carers.  In this regard, I intend bringing a holistic recommended response and implementation plan to Government in April.

I hope this clarifies the matter for the Deputy.

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