Paul Murphy
Ceist:430. Deputy Paul Murphy asked the Minister for Social Protection her views on a matter (details supplied); and if she will make a statement on the matter. [52760/22]
Amharc ar fhreagraTuesday, 25 October 2022
Ceisteanna (430)
Freagraí scríofa
This 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 provides for a range of measures including PRSI credits, Homemaking Disregards and HomeCaring Periods to recognise caring periods (of up to 20 years) outside of paid employment in the calculation of a payment rate.
Those whose pensions were decided prior to September 2012 (i.e., who were born prior to 1 September 1946) were not affected by the Budget 2012 rate band changes. Consequently, people whose pensions were calculated under the 2000-2012 rate bands were subject to a significantly more generous regime than those who qualified before or afterwards, as a Yearly Average of only 20 contributions per year (out of a maximum requirement of 48) could attract a 98% pension.
The State pension system already provides recognition to those whose work history includes an extended period outside the paid workplace, often to raise families or in a full-time caring role.
This is provided 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, also known as the interim Total Contributions Approach).
Since April 2019, all new State (Contributory) Pension applications are assessed under all possible rate calculation methods, including the Yearly Average and the interim Total Contributions Approach, 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), they may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is over 95% of the maximum rate of the State Pension (Contributory). Alternatively, an Increase for a Qualified Adult (IQA) is paid, generally, where a pensioner has an adult dependent (e.g., a spouse, civil partner or cohabitant who is financially dependent upon him/her), who does not have enough contributions to claim a maximum rate State Pension (Contributory) in his/her own right. The payment rate for the IQA is up to 90% of a full contributory pension. The most advantageous payment for a pensioner will depend upon their individual circumstances.
I hope this clarifies matters for the Deputy.