Dáil Éireann Debate, Tuesday - 30 June 2020
857. Deputy Patricia Ryan asked the Minister for Employment Affairs and Social Protection when she will facilitate women forced to leave their employment due to the marriage rule to avail of contributory pensions; and if she will make a statement on the matter. [13536/20]
Amharc ar fhreagraThe marriage bar describes a rule that existed in most of the public service, and some private sector employments, where women were required to leave their employment upon marriage. As it was a rule rather than law, married women could either return to work or take up other work, and many did.
Most public servants recruited prior to 1995 are not entitled to the State pension, regardless of gender and marital status. Therefore, the marriage bar would not generally have impacted on State pension entitlement, as they would not have qualified for that payment had they remained in public sector employment. The implications it had for public service pensions are matters for the Minister for Public Expenditure and Reform.
A person is required to have a minimum of 520 paid reckonable PRSI contributions in order to qualify for the State Pension (Contributory). The actuarial value of the State Pension is estimated at over €300,000 which requires people who claim a contributory pension to have made at least 10 years of paid contributions over 50 years of a working age life.
When the Interim Total Contributions Approach (TCA) was introduced in 2018 it included provision for the HomeCaring Periods Scheme which fundamentally changed the entitlement of many who spent time out of the workforce caring for others. It, for the first time, acknowledged home caring periods prior to 1994 and provides for up to 20 years of home caring periods to be considered. Those who have a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of credits / homecaring periods, qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. Arising from this initiative, the Department reviewed over 94,000 cases resulting in over 38,000 receiving an increased pension payment. Since April 2019 all new State (Contributory) Pension applications are assessed under all possible rate calculation methods, including the Interim TCA, with the most beneficial rate paid to the pensioner.
It should be noted if a person does not satisfy those conditions, they may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is over 95% that of the maximum rate of the State Pension (Contributory). Alternatively, if their spouse is a State pensioner and they have significant household means, their most beneficial payment may be an Increase for a Qualified Adult, based on their personal means, and amounting up to 90% of a full contributory pension.
The Total Contributions Approach (TCA), when it is introduced, is intended to be a fairer and more transparent system where the person’s lifetime contribution will be more closely reflected in the benefit received. Having carefully examined the outputs of the TCA consultation process, officials in the Department are designing the scheme, with a view to including significant recognition for home caring periods in the new model. The final design for the TCA model will need to be brought to Government for consideration and approval.
I hope this clarifies the matter for the Deputy.
