The State Pension (Contributory) (SPC) is funded from the Social Insurance Fund through the contributions paid by workers. The rate of payment reflects the number of social insurance contributions paid over a working life. Eligibility for SPC is based on a number of criteria:
• Being aged 66 or over.
• Having entered the Social Insurance system 10 years before you intend to drawdown your SPC.
• Having a minimum of 520 paid social insurance contributions (i.e., 10 years reckonable PRSI contributions).
This Government acknowledges the important role that family carers play and is fully committed to supporting them in that role. Once a person has met the minimum requirement of 520 paid contributions, the State Pension system gives significant recognition to those whose work history includes extended periods outside of paid employment, often to raise families or in a full-time caring role including:
• PRSI credits (which include Credits for Carers Benefit and Carers Allowance).
• 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.
Despite these measures, some long-term carers of incapacitated dependants faced barriers in accessing the SPC. They may, for example, have difficulty establishing the minimum number of 10 years paid contributions.
Based on a commitment in the previous Programme for Government, the Pensions Commission was asked to consider how people who have provided long-term care for incapacitated dependants can be accommodated within the State Pension system. The Commission engaged in a public consultation process and had the benefit of presentations from Family Carer’s Ireland and the National Women’s Council in forming its recommendations on the proposals and the period of care. The Commission recommended that long-term carers should be given access to SPC and defined long-term caring as caring for more than 20 years. Setting the criteria of more than 20 years is in recognition of the existing access to SPC for carers who may have less than and up to 20 years of caring periods.
Since January 2024, long-term carer's 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 only and can be used to fill any gaps in a person's contribution record, including satisfying the minimum 520 contributions required for eligibility.
The Department has not costed the introduction of a separate "long-term carer’s pension" as it isn't necessary, because the Long-Term Carers Contribution scheme already provides long-term carers with access to the SPC, including the possibility of a maximum rate.
I hope that clarifies the matter for the Deputy.
