Submission 62
February 2008
The averaging rule in calculating Contributory Pension entitlement: I submit that allowing the years spent caring for a family to reduce and erode a person’s entitlement is an unjust system of calculation. It is unfair that homemakers with children before 1994 are disadvantaged. The rules should be amended: equality be given to homemakers not covered by the 1994 rule by allowing the child caring years to be disregarded, or credits given. An alternative for consideration: allow for the aggregate of PRSI contributions to be reckoned from the start of resumption of employment after the homemaking years and averaged over those years – a person’s PRSI would thus be reduced but it would seem better than to be penalised for being the carer of society’s developing citizens. (Or allow the better option in a person’s record).
I also propose that there be some consideration for people with disabilities, or people who develop disability in later life. To recognise the greater difficulties in gaining employment, when there is a gap while a person my be re-training, gaining new skills,
seeking employment, and under the present system are not entitled to credits, credits be allowed to ensure that this pro-active period does not result in a reduction in a person’s average contributions.
