Dáil Éireann Debate, Tuesday - 17 May 2022
131. Deputy Pádraig O'Sullivan asked the Minister for Social Protection the action her Department is taking to develop a pension solution for family carers to ensure they have adequate income once they reach retirement age as per the commitment in the Programme for Government; and if she will make a statement on the matter. [24585/22]
Amharc ar fhreagraThe Government acknowledges the important role that carers play and is fully committed to supporting them in that role. Accordingly, the current State Pension (Contributory) system already includes a comprehensive range of measures including PRSI Credits, Homemaker's Disregards and HomeCaring Periods to recognise caring periods outside of paid employment in the calculation of a pension payment.
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, in recognition of the enormous value of the work carried out by them.
The Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund. The Commission was an independent body comprised of knowledgeable and experienced academics, pension experts, members of civil society and representatives of workers and employers. The Commission’s terms of reference included consideration of how people who have provided long-term care for incapacitated dependants can be accommodated within the State Pension system.
The Pensions Commission’s Report was published on 7th October 2021. It established that the current State Pension system is not sustainable into the future and that changes are needed. The report set out a wide-range of recommendations, including enhanced pension provision for long-term carers. It recommended that long-term carers (defined as caring for more than 20 years) should be given access to the State Pension (Contributory) by having retrospective contributions paid for them by the Exchequer for any gaps in their contribution history arising from that caring. The Commission also recommended that relevant Departments should examine, in conjunction with relevant stakeholders, options for the creation of a statutory "Family Carer Register" which could, in time, facilitate the identification of long-term carers for State Pension (Contributory) purposes as well as assisting in the planning and delivery of services for family carers.
In the interests both of older people and future generations of older people, the Government is considering the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically. The views of the Joint Committee on Social Protection, Community and Rural Development and the Islands and the Commission on Taxation and Welfare are being considered as part of these deliberations. My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system. I intend bringing a recommended response and implementation plan to Government in the coming weeks.
It is clear from the Commission’s work that State Pension reform is necessary and it is complex. It would be a strategic risk not to plan and provide for projected demographic changes, not least in terms of income adequacy for older people. The State Pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
I hope this clarifies the matter for the Deputy.
