Gary Gannon
Ceist:136. Deputy Gary Gannon asked the Minister for Social Protection the progress made to date on addressing the pension gap for carers; and if she will make a statement on the matter. [26233/21]
Amharc ar fhreagraTuesday, 18 May 2021
Ceisteanna (136)
Freagraí scríofa
The Programme for Government “Our Shared Future” includes a commitment to examine options for a pension solution for carers, the majority of whom are women, particularly those of incapacitated children. This Government acknowledges the important role that carers play and is fully committed to supporting them in that role.
As the Deputy is aware, the Pensions Commission was established in November 2020 to examine sustainability and eligibility issues with the State Pension and the Social Insurance Fund, in fulfilment of a Programme for Government commitment. As part of its Terms of Reference, the Commission has been asked to consider how the State pension system can further accommodate long-term carers. These issues will be considered from a perspective of fiscal and social sustainability, and intergenerational fairness. Details on the Commission's work, including agendas, minutes and presentations made to the Commission, are available on its website, PensionsCommission.gov.ie.
The Commission is due to provide its report to Government by June 2021.
The State pension system currently gives significant recognition to those whose work history includes an extended period of time outside the paid workplace, often to raise families or in a full-time caring role, through the award of credits and/or the application of the Homemaker’s Scheme (under the Yearly Average method for payment calculation) and/or the application of HomeCaring Periods (under the Aggregated Contribution Method or Interim Total Contributions Approach). Details of these are - Credits – PRSI Credits are awarded to recipients of Carer’s Allowance (and Carer’s Benefit) where they have an underlying entitlement to credits. Credits are also awarded to workers who take unpaid Carer’s Leave from work.
Homemaker’s Scheme - The scheme, which was introduced with effect from 1994, is designed to help homemakers and carers qualify for State Pension (Contributory). The Scheme, which allows periods caring for children or people with a caring need to be disregarded (from 1994), can have the effect of increasing the Yearly Average.
HomeCaring Periods – This Scheme makes it easier for a home carer to qualify for a higher rate of State Pension (Contributory). HomeCaring Periods can only be used under the Aggregated Contribution Method (also known as Interim TCA or T12) of pension calculation. HomeCaring Periods may be awarded for each week not already covered by a paid or credited social insurance contribution. A maximum of 20 years HomeCaring periods can be used as part of the Aggregated Contribution Method calculation.
Since April 2019 all new State (Contributory) Pension applications are assessed under all possible rate calculation methods, including the Yearly Average and Aggregated Contribution Method, with the most beneficial rate paid to the pensioner. The elements which make up each method are set out in legislation.
It should be noted that if a person does not satisfy the conditionality to qualify for State Pension (Contributory), s/he 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 his/her spouse is a State pensioner with significant household means, his/her most beneficial payment may be an Increase for a Qualified Adult, based on his/her personal means, and amounting to up to 90% of a full contributory pension.
I hope this clarifies the matter for the Deputy.