I propose to take Questions Nos. 116 and 124 together.
The State pension is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives.
The homemaker’s scheme makes qualification for the State pension (contributory) easier by disregarding time spent out of the workforce for caring duties. The scheme was introduced in and took effect from 1994. Eligibility for the homemaker’s scheme is conditional on firstly meeting the standard qualifying conditions for State pension.
Backdating the scheme to 1964 would involve considerable costs. An analysis undertaken in the 2007 Green Paper on Pensions identified that to back-date the homemaker’s scheme to 1953, the year when the unified system of social insurance was introduced in Ireland, would cost the Exchequer in the region of €160m and to 1973/73, an estimated €150m. Costs in relation to this scheme under the current rules, are expected to increase in the coming years due to the increase in female employment rates since 1994.
It should be noted that women who do not qualify for a full rate pension may, if their spouse is in receipt of a State pension contributory, receive a qualified adult payment at a higher rate where they satisfy a means test. A State pension non-contributory pension, which is a means tested payment, may also be payable.
Time taken out of the workforce for homemaking and caring duties will continue to be protected by the current disregard. While my Department will keep the homemaker’s scheme under review, any improvements which could result in further costs for the Exchequer could only be considered in a budgetary context.