Dáil Éireann Debate, Tuesday - 6 February 2018
600. Deputy Róisín Shortall asked the Minister for Employment Affairs and Social Protection if the 20 year home caring credits announced recently will apply to qualifying pensioners after the total contributions approach comes into effect in 2020. [5871/18]
Amharc ar fhreagraOn 23 January, the Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated by a new “Total Contributions Approach”, TCA, which will include up to 20 years of a new HomeCaring credit. This approach is expected to significantly benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. It will make it easier for pensioners assessed under the yearly average model, to qualify for a higher rate of the State Pension, contributory. The TCA will ensure that the totality of a person’s social insurance contributions, as opposed to the timing of them, determines their final pension outcome.
Under the new arrangements a person who reached pension age after 1 September 2012 and has a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of the new HomeCaring credits, will qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. Crucially, unlike the existing Homemakers disregard system, periods of home caring before that scheme was introduced in 1994 may be recognised under the new scheme. This is particularly important among people reaching pension age around now, many of whom had children in the time before a range of childcare options were widely available to the extent they have become in recent decades.
Up to 10 years of other credits, for example when unemployed or ill, may also be used, subject to the total number of credits not exceeding 20 years. So, for example, a person might receive a maximum pension based on 20 years paid PRSI contributions, 5 years jobseeker credits, and 15 years HomeCaring Credits, over a 50 year period.
The model of TCA which will be in place for all new pensioners from 2020 will be decided upon following a public consultation later this year, and I do not wish to pre-empt this process, nor the Government decision and legislation which will follow it. However, I can state that the need to provide adequate provision for home-carers will be an important factor in the final design.
I hope this clarifies the matter for the Deputy.
