Peter Power (Limerick East, Fianna Fail)

I fully take on board the main points of the Adjournment motion and certainly will convey back to the Department the Senator's requests for information.

To qualify for the maximum rate of the State contributory pension, a person must start paying social insurance at least ten years before pension age, make a minimum of 260 contributions at an appropriate rate and achieve a yearly average of at least 48 contributions, paid or credited, on the social insurance record over his or her working life. Reduced pensions are paid to those with yearly averages as low as ten contributions. The objective of these conditions is to ensure those qualifying for pensions have made an adequate and ongoing commitment to social insurance in Ireland.

It should also be remembered that people with a long working history in the UK or other countries more than likely will be in receipt of a pension from that country. In the UK, requirements for the full social insurance pension are being eased from 2010. Apart from the standard qualifying conditions, a person's entitlement to a pension can also be assessed under a number of arrangements which are in place to cater for those with social insurance contributions at different rates, with contributions from other EU member states or countries with which Ireland has reciprocal social security agreements and with pre-1953 contributions.

The manner in which social insurance contributions from other EU countries are to be used in assessing eligibility for a pension is laid down in Regulation (EEC) No 1408/71. The same general principles are applied in the reciprocal agreements Ireland has with a number of other countries. Under these regulations contributions made in another EU country are added to Irish contributions and a notional rate calculated as if all the contributions were made in this country. A formula is then applied to this result which is designed to ensure the actual Irish pension a person qualifies for reflects the level of Irish social insurance contributions contained in their overall insurance record. In all, about 22,000 pensions are paid on this basis.

The pre-1953 pension is a special measure designed to provide a pension to people who would not otherwise qualify for any payment. These pensions require payment of just 260 contributions, one of which must have been made before 1953. Payment is made at half the full standard rate. The scheme has been of particular benefit to people who emigrated in the 1950s. I know that Senator Cecelia Keaveney has championed this issue for a long period.

Those with no entitlement to a contributory pension or whose entitlement is much reduced may have their position assessed under the means-tested non-contributory State pension. At present more than 14,000 people receive this payment in addition to a British retirement pension.

The average contributions test is a key qualifying condition at present but it is accepted that it can give rise to an anomalous situation in that people with the same level of overall contributions may well qualify for very different rates of payment. Accordingly, the test can have a serious impact on pension entitlements, especially where a person has a significant gap in his or her overall record. This applies not only to people who may have emigrated and returned later to Ireland, but it can, for instance, also impact on people who may have been out of the workforce for a long period. The issue is discussed at length in the Green Paper on pensions which was published in October last year, and a number of possible reforms are put forward for consideration.

In deciding on what is a reasonable contribution for a pension, we must remember that the contributory State pension is a very valuable benefit. It is important, therefore, that we ensure those who qualify for the payment have contributed to the fullest extent possible.

The Government has indicated it will finalise its response to the pensions Green Paper by the end of the year and publish a framework for future policy on all aspects of pension policy. A review of the qualifying conditions for State contributory pensions will be an important element of such a framework.