Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

My Department makes several payments to people over the age of 66.  One of these is the State pension contributory, which has a number of qualifying criteria, including having a minimum of 520 paid social insurance contributions.  Where a person meets the qualifying criteria, the rate of payment is calculated based on the number of contributions paid and credited. As the actuarial value of the State pension contributory is currently estimated at approximately €380,000, it is reasonable to require people claiming a contributory pension to have made at least 520 paid contributions over the term of their working life to qualify for a payment.

Last year, legislation was enacted to introduce a series of landmark reforms to the State pension system in response to the recommendations from the Pensions Commission. A key measure was the introduction of a flexible pension system.  This new system is about providing people with choice.  People will still be able to retire at 66 and draw down their pension as they always have.  Additionally, they may now choose to defer claiming their State pension contributory up to the age of 70 and receive an actuarially based increase in their weekly payment rate. People can decide for themselves what best suits their needs and circumstances.  For example, a person who reaches age 66 who does not have sufficient contributions to qualify for a contributory State pension may be able to use this period to continue to work to establish entitlement or increase his or her level of payment. Where a person does not satisfy the conditions to qualify for the contributory pension or qualifies for less than the maximum rate, he or she may instead qualify for the means tested non-contributory pension with a maximum payment equivalent to 95% of the contributory rate. I hope this clarifies the matter.

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