Dáil Éireann Debate, Wednesday - 20 September 2023
654. Deputy Pádraig O'Sullivan asked the Minister for Social Protection if a person (details supplied) can purchase additional credits in order to qualify the minimum State pension (contributory); and if she will make a statement on the matter. [40612/23]
View answerThe person concerned reached pension age on 11 May 2023. An application form for State Pension (contributory) was received on 24 May 2023.
Under current eligibility conditions, an individual must have 520 full-rate paid contributions in order to qualify for standard State pension (contributory). 520 full-rate contributions equate to 10 years of full-rate insurable employment.
According to the records of my Department, the person concerned has a total of 492 full-rate contributions. Since their contributions fall short of the requisite 520 paid full-rate contributions, they do not qualify for State Pension (contributory).
The person concerned applied for Home Caring Periods (HCP) for their three children. The HCPs were awarded for the period 16 June 1980 to 30 June 1998. However, HCPs can only be used to improve pension entitlement and cannot be used to satisfy the qualify conditions for State Pension (contributory). A person must satisfy the qualifying conditions for State Pension (contributory) before HCPs are used in a pension calculation.
They were notified in writing of this decision on 26 August 2023, provided with a copy of their social insurance record on which the decision was based, and afforded the right of review and appeal.
Voluntary contributions can help maintain a person’s social insurance record. One of the qualifying criteria to make voluntary contributions is that a person must have at least 520 contributions paid under compulsory insurance in either employment or self-employment. As the person concerned does not have the required 520 contributions, they do not satisfy the eligibility criteria for purchasing voluntary contributions.
In September 2022, I announced a series of landmark reforms to the State Pension system. The measures are in response to the Pensions Commission’s recommendations and represent the biggest ever structural reform of the Irish State Pension system.
One of the most important reforms agreed by Government is enhanced State Pension provision for people who have been caring for incapacitated dependents for over 20 years. It will do this by attributing the equivalent of paid contributions to long-term carers to cover gaps in their contribution record.
The Long-Term Carer's Contributions (LTCC) will be available to those who provided full time care for 20 years (1040 weeks) or more to an incapacitated dependent. The periods of care-giving do not need to be consecutive. I expect to bring the legislation required to introduce the LTCC before the Oireachtas soon, with the scheme being fully implemented from January 2024. This month, my Department launched an online system for people to register for LTCC. This will facilitate the expeditious processing of LTCC upon enactment of the legislation.
It is also open to the person concerned to apply for the means-tested state pension (non-contributory), the maximum rate of which equates to 95% of the maximum rate of state pension (contributory).
I hope this clarifies the position for the Deputy.
