Trevor Sargent
Ceist:86 Mr. Sargent asked the Minister for Social and Family Affairs the response she has made to recent calls by the National Women's Council to reform the social welfare system. [4036/04]
Amharc ar fhreagraWednesday, 11 February 2004
Ceisteanna (26)
Freagraí scríofa
The Government is committed to extending social insurance pension cover to as many categories as possible. In this regard a number of measures have been introduced in recent years which are making it easier for people to qualify for pensions. These measures include extended social insurance coverage and an easing of the qualifying conditions for old age contributory and retirement pensions. The latter measures are of particular benefit to women who may have less than complete social insurance records.
In 1997 the average number of contributions required for pension purposes was reduced from 20 to ten and in 2000, a special half rate pension was introduced based on pre-1953 insurance contributions. Pro rata pensions are also available to allow people with mixed rate insurance records to receive a payment.
At present, about 66,000 women are receiving an old age contributory or retirement pension against just over 41,000 in 1994. At the same time, the number receiving a non-contributory old age pension has dropped from almost 62,000 to just over 50,000. This is in keeping with the general trend in pensions which is a reduction in the numbers receiving means tested payments while at the same time an ongoing increase in numbers receiving payments based on social insurance contributions.
With improved social insurance coverage, easing of qualifying conditions and improved workforce participation more and more people, particularly women, will qualify for contributory payments in the future.
The National Women's Council has called for changes in the qualified adult allowance and the homemaker's scheme. In regard to the former, the Government has already given a commitment to increase this allowance to the maximum of the old age non-contributory pension. Considerable progress has already been made in this regard with the qualified allowance on the contributory payment now standing at €129.60 or 84% of the old age non-contributory rate. Further increases will be considered in a budgetary context. Also, since October 2002 new pension claimants can opt to have the allowance paid direct to their spouse or partner.
A review of the homemaker's scheme, which disregards certain periods spent outside the workforce in determining entitlement to contributory pensions, is being undertaken as part of an overall review of the qualifying conditions for the old age contributory and retirement pensions which is under way. The review will consider with the points raised by the National Women's Council on backdating the scheme and replacing the disregard system with one based on credits. I expect the review will be ready for publication during the second quarter of this year. Changes to the scheme will be considered in the light of the conclusions of this review.
On the issue of women in farming, which was also referred to by the council, the issue of the insurability of farm spouses for social insurance pensions and other benefits was considered by an interdepartmental group which reported in 2002. The group considered a number of alternative solutions to resolving this issue and concluded that the formation of business partnerships offers an immediate way by which farm spouses can access social insurance cover and its associated benefits.
With regard to occupational and private pensions cover, the Deputy will be aware of Government targets which seek to raise overall coverage in this area. We have introduced personal retirement savings accounts which are low cost flexible pension products not tied to a particular employment. This makes them particularly suitable for people who may wish to maintain contributions when they are not working.