Dáil Éireann Debate, Tuesday - 21 February 2023
446. Deputy Bríd Smith asked the Minister for Social Protection the number of women currently receiving State pension (contributory) but whose years out of the workforce as a homemaker prior to 1994 are not disregarded when working out the yearly average contributions for the pension. [8088/23]
Amharc ar fhreagraThis Government acknowledges the important role that carers play and is fully committed to supporting them in that role. Subject to the standard qualifying conditions for State Pension (Contributory) also being satisfied, the State pension system provides 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.
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 Total Contributions Approach).
Details of these are –
- 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.
- The Homemaker’s 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 a person's 'Yearly Average'.
- HomeCaring Periods may be awarded for each week not already covered by a paid or credited social insurance contribution (regardless of when they occurred) up to a maximum of 20 years. This applies to periods both before and after 1994.
HomeCaring Periods are used under the 'Total Contributions Approach' of pension calculation and not the 'yearly average' pensions calculation. Therefore, the information requested by the Deputy is not available. If the Deputy has a particular case, it can be brought to the attention of my department who will provide further clarification.
It should be noted that, if a person does not qualify for a State Pension (Contributory) or qualifies for a reduced rate, he or she may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is 95% of the rate of the State Pension (Contributory). Alternatively, an Increase for a Qualified Adult (IQA) is paid, generally, where a pensioner has an adult dependent who does not have enough contributions to claim a maximum rate State Pension (Contributory) in his or her own right. The payment rate for the IQA is up to 90% of the full rate State Pension (contributory). The most advantageous payment for a pensioner will depend upon their individual circumstances.
Despite the existing measures within the State Pension system that recognise periods spent caring, long-term carers of incapacitated dependents may still face barriers in accessing the State Pension.
I announced a series of landmark reforms to the State Pension system in September 2022. One of the reforms agreed by Government is enhanced State Pension provision for long-term carers of incapacitated dependents (who have been caring in excess of 20 years), as recommended by the Pensions Commission, and to be introduced from January 2024. My officials are currently working to implement the reforms, including the drafting of legislation and development of administrative and IT systems as necessary.
I hope this clarifies the matter for the Deputy.
