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Dáil Éireann díospóireacht -
Wednesday, 23 Jun 1999

Vol. 506 No. 6

Written Answers. - Social Insurance.

John Bruton

Ceist:

83 Mr. J. Bruton asked the Minister for Social, Community and Family Affairs if the interests of people working in the home which is not currently an insurable form of employment will be considered by the recently appointed working group on social insurance in order to ensure that social insurance rules take due account of the constitutional recognition of the role of those who work at home. [16098/99]

As I have already informed the House, my Department has recently set up a working group on social insurance which comprises representatives of the IBEC, ICTU and the community and voluntary pillar as well as officials from my Department. The purpose of the group, which meets for the second time later this week, is to examine issues relating to the ongoing development of the social insurance system as it relates to employed contributors. This will include an examination of the degree and types of social insurance cover provided to existing employee contributors as well as the possibility of providing and financing new benefits under the system.

In this regard, the group will be giving consideration to the possible introduction of social insurance benefits for insured persons who have to temporarily leave the workforce to care for children or incapacitated persons. Such benefits could include a carer's benefit which is being examined as part of my ongoing response to the 1998 review of the carer's allowance which provided the basis for the Government's £18 million package of measures for carers introduced in the 1999 budget. The group will focus on the appropriateness of the current social insurance system, including funding arrangements, in the context of a rapidly changing economic and social environment. It is hoped that the deliberations of the group will inform all parties on the issues involved and explore the level of consensus among the social partners involved as to future priorities.

The fundamental principle of social insurance is that employees, their employers and the self employed make social insurance contributions while economically active. These contributions are used to pay the pensions of retired contributors and short-term benefits such as unemployment and disability benefits to contributors who are temporarily out of the workforce. While persons working in the home are not compulsorily covered by the system there are a number of arrangements in place which cater for the position of former contributors who have had to leave the workforce for homemaking purposes, including the care of children and incapacitated persons, or for other reasons.

Former contributors who cease to be compulsorily covered by social insurance can opt to become insured on a voluntary basis and pay voluntary contributions. These contributions provide continuing cover for the pensions which the employee or self-employed contributor was covered for when working. This option is available to all former contributors, subject to certain conditions, who are working in the home or are outside the formal workforce for some other reason.

There are, in addition, special arrangements for homemakers which enable persons who work in the home to qualify for an old age (contributory) pension. One of the qualifying conditions for this pension is that the person must have a minimum yearly average number of contributions. From April 1994, contribution years spent out of the workforce caring for children up to the age of six (increased to age 12 from April 1995) or incapacitated people may be disregarded for the purpose of establishing the yearly average number of contributions for old age (contributory) pension pur poses. A maximum of 20 years can be disregarded in this way.
Finally, former employee contributors who have left the workforce to care for persons who require full time care and attention and who are in receipt of carer's allowance receive credited social insurance contributions which enable the contributor to continue social insurance cover for all the benefits and pensions which they were formerly covered for when working.
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