Dáil Éireann Debate, Tuesday - 3 October 2017
577. Deputy Willie Penrose asked the Minister for Employment Affairs and Social Protection her plans to consider applying the homemaker’s scheme retrospectively in order to ensure equitable access to the State pension and thereby benefit older women who took career breaks prior to 1994; and if she will make a statement on the matter. [41583/17]
Amharc ar fhreagraThe homemaker’s scheme, which was introduced in 1994 and provides for periods since then, makes qualification easier for those who take time out of the workforce for caring duties. It does this by allowing gaps of 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 averaged for pension purposes.
It is estimated that extending the period covered by this scheme to periods prior to its introduction in 1994 would cost some €290 million per year.
Where people do not qualify for a maximum-rate contributory pension in their own right, the social protection system provides alternative methods of supporting such pensioners in old age. Where their spouse has a contributory pension, they may qualify for an Increase for a Qualified Adult amounting up to 90% of a full-rate pension, which by default is paid directly to them, and is subject to a personal means-test. Alternatively, they may qualify for a State pension (non-contributory), based on their household means, amounting up to 95% of the maximum contributory pension rate. There are very significant income and capital disregards in the means tests for these payments, which result in the large majority of payees – most of whom are women – being paid at the maximum rate.
I hope this clarifies the matter for the Deputy.
