Séamus Brennan (Dublin South, Fianna Fail)

The qualifying conditions for pensions require that a person should have paid a minimum number of contributions at an appropriate rate and that he or she should enter insurance ten years before pension age and achieve a yearly average of between ten and 48 contributions over his or her working life. A yearly average of 48 contributions is required for a full-rate pension. Reduced pensions are payable for those with yearly averages of between ten and 47 contributions. In the case of retirement, a yearly average of 24 contributions is required for a minimum pension.

Provision is also made for the payment of pro rata pensions in cases where people have a mix of contributions from different classes on their record or insurance from other EU states or countries with which Ireland has a bilateral agreement. The conditions are designed to ensure that those qualifying have, as I said in my previous reply, demonstrated a fairly strong attachment to our social insurance system and that the payment they receive reflects their overall contribution. It is a contributory scheme, after all. A range of pro rata and special pensions is available to cater for cases where people have the insurance at different rates.

As the Senator will be aware, special pensions have been introduced to deal with perceived anomalies in the case of pre-1953 insurance and certain self-employed people. The pre-1953 and special self-employed pensions represent fairly good value for the level of contributions made when compared to the insurance records and payments received by other contributors. The range of standard, pro rata and special pensions is in most cases there to deal with mixed or reduced records. I am satisfied that the range of standard, pro rata and special pensions now available affords a considerable degree of recognition for the level of contributions individuals have paid into the social insurance fund.

Having said that, further developments in qualifying conditions will be considered in the light of the phase 2 report on qualifying conditions due in the new year. Among other things, that report will examine the possibility of replacing the system of averages with one based on total contributions paid or credited. Under the heading of that report, the system is evolving.