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Dáil

Written answer

Pension Provisions

18. Deputy Edward Timmins asked the Minister for Social Protection to review the contributory pension entitlement for women who, due to extended periods out of employment to care for children and family, have less than 520 contributions; if he will consider a pro rata contributory pension to recognise their caring role; and if he will make a statement on the matter. [46265/26]

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Dara Calleary Minister for Social Protection Fianna Fáil

The State Pension (Contributory) is funded from the Social Insurance Fund through the social insurance contributions paid by workers and employers. The rate of payment reflects the number of social insurance contributions paid over a working life. To qualify for this payment a person requires 520 (equivalent to 10 years) paid contributions.

The current State Pension (Contributory) system gives significant recognition and support to those whose work history includes extended periods outside of paid employment, often to raise families or in a full-time caring role. Up to 20 years of HomeCaring Periods can be awarded in respect of time spent raising children or caring for family, provided an applicant has the necessary 520 paid contributions to qualify for the payment.

In addition, Long-Term Carers Contributions can be awarded to a person who has cared for an incapacitated person for a period of 20 years or more. These contributions are treated the same as paid contributions for State Pension (Contributory) entitlement. This means women who were unable to work on a long-term basis due to caring for incapacitated dependents can qualify for the State Pension (Contributory) without having paid at least 520 contributions.

For those who do not qualify for a State Pension (Contributory), or who only qualify for a reduced rate contributory pension based on their social insurance record, the means-tested State Pension (Non-Contributory) is available.

Finally, where a person's spouse or partner is in receipt of a State Pension (Contributory), they can also apply for an increase for a Qualified Adult, amounting up to 90% of a full rate State Pension (Contributory). Entitlement to this increase is be based on the Qualified Adult's means.

The combination of these measures means that no person with a viable income need falls outside these schemes.

The previous Government established a Commission on Pensions to review the State Pension system and make recommendations for its future. The Commission strongly supported the retention of the qualifying criterion of 520 paid contributions. There are currently no plans to change this qualifying condition.

I trust this clarifies the matter for the Deputy.

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