Dáil Éireann díospóireacht -
Tuesday, 10 Mar 1998

Vol. 488 No. 4

Written Answers - Pension Provisions.

Eamon Gilmore

Ceist:

24 Mr. Gilmore asked the Minister for Social, Community and Family Affairs the progress, if any, that has been made in regard to the commitment in An Action Programme for the Millennium to allow women, who take time out for family reasons, to continue contributions for pension purposes; and if he will make a statement on the matter. [6301/98]

Breeda Moynihan-Cronin

Ceist:

35 Mrs. B. Moynihan-Cronin asked the Minister for Social, Community and Family Affairs when he will examine the situation of women in the home in relation to entitlement to pensions in their own right and a payment in their own right; and if he will make a statement on the matter. [6357/98]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

I propose to take Questions Nos. 24 and 35 together.

In 1994 special arrangements were introduced designed to ensure that homemakers do not suffer a loss of pension entitlement because of time spent full time at home looking after a child, or caring full time for an elderly or incapacitated person.

From 6 April 1994, time spent working in the home rearing young children up to 6 years of age or caring for incapacitated people is disregarded for the purpose of calculating the yearly average condition in determining entitlement to contributory old age pension. The 1996 Social Welfare Act provided for an increase in the age of children being cared for from 6 to 12 years and this improvement was effective from the contribution year 1995-96. A maximum of 20 years may be disregarded. It is estimated that up to 250,000 people could qualify for disregards under this arrangement.

From November 1997 newpro-rata pensions were introduced so that people who pay social insurance for a reasonable period of time qualify for an old age (contributory) pension. A yearly average of between 15 and 19 contributions gives a pension of 75 per cent of the maximum rate, while an average of between 10 and 14 gives a pension of 50 per cent of the maximum rate. To qualify a person also needs to have a minimum of 260 paid contributions.

This measure will be of benefit to many women who have gaps in their PRSI records due to working in the home looking after a child, or caring full time for an elderly or incapacitated person.

The general question of pension provision (both social welfare and occupational), arises for consideration in the context of the national pensions policy initiative. A report from the Pensions Board, including recommendations, is expected in the next few months.

In line with the commitment in the action programme, I will keep the current arrangements under review.