Dáil Éireann Debate, Tuesday - 28 April 2015
105. Deputy Willie Penrose asked the Tánaiste and Minister for Social Protection if she will take steps to ensure that appropriate credits are provided for persons who had to leave the workforce due to the marriage bar in the early 1970s, as this is having an impact upon their ability to receive appropriate pensions at this point in time; and if she will make a statement on the matter. [16806/15]
Amharc ar fhreagraThe ‘marriage bar’, a requirement that women leave paid employment on entering marriage, was a condition of employment within most sectors of the public service until 1973. A number of private sector employers operated similar restrictions at that time, generally in respect of ‘white collar’ positions, notably in the financial sector. The marriage bar was abolished in the public service in 1973, and similar provisions in the private sector were made illegal in 1977, by legislation prohibiting discrimination in employment on grounds of sex.
Issues relating to public sector employment and pensions are the responsibility of the Minister for Public Expenditure and Reform. In general, civil and public servants recruited at that time paid a modified rate of PRSI (i.e. not the full Class A rate) which gave coverage for widow(er)'s and orphan's pensions, occupational injury benefit, bereavement grant and carer’s benefit only. It did not provide cover for the State pension. The modified rate of social insurance was a condition of employment for public servants at that time. Accordingly, even if those affected by the marriage bar in the public service had continued in employment, contributions paid at this rate would not have given entitlement to a State pension (contributory) under the social welfare system.
It is not possible to estimate how many women in the private sector faced an equivalent requirement to leave their jobs upon marriage, nor how many of these would then have taken up employment with other employers that had no such policy. At that time equivalents to the current jobseeker's benefit and allowance schemes were available to persons suffering the contingency of unemployment in a manner similar to that which exists today and there were provisions whereby persons not entitled to benefit or assistance could protect their social insurance record via credited contributions.
Information provided to workers at the time clearly notified them with regard to the provision of credits, and persons leaving employment were also advised of the potential to continue making social insurance contributions via the voluntary contributions system. Credits would generally only have been available to persons who were available for and genuinely seeking full-time work.
The homemaker’s scheme was introduced in 1994 to make qualification for State pension contributory (SPC) easier for those who take time out of the workforce for caring duties.
The scheme allows up to 20 years spent caring for children under 12 years of age, or incapacitated people, to be disregarded when a person’s social insurance record is being calculated for pension purposes. The effect of this is to reduce the number of years by which the person’s contributions are divided, thereby increasing their yearly average, making it easier for them to qualify for a maximum rate SPC. However, it is important to note that the homemaker’s scheme will not, of itself, qualify a person for a SPC. The standard qualifying conditions for the SPC must also be satisfied. These require a person to enter insurable employment at least ten years before pension age, pay a minimum of 520 contributions at the correct rate (credited contributions do not satisfy this condition) and achieve a yearly average of at least 10 contributions paid or credited on their record.
For those with insufficient contributions to meet the requirements for a State pension (contributory), the State pension system provides alternative methods of support. If someone has paid little or no PRSI, they may qualify for a means tested State pension (non-contributory), the maximum personal rate for which is €219, which amounts to just over 95% of the maximum rate of the State pension (contributory). Alternatively, if their spouse or civil partner is in receipt of a State pension (contributory), they may instead qualify for an Increase for a Qualified Adult of up to €206.30, which is just under 90% of the maximum personal rate of the State pension (contributory).
