Brian Ó Domhnaill (Fianna Fail)

Persons with a yearly average of between 20 and 47 PRSI contributions during their working lives receive a weekly State pension that is only €4.50 less than that paid to those with a yearly average of 48 or more contributions. If I read this provision correctly, the changes proposed mean that a lower pension will be payable to new applicants for a State pension with a yearly average of less than 48 contributions. This section, if approved, will give legislative effect to this measure which will have implications for new applicants for State pensions.

Moreover, I understand the section also includes a change in respect of late claims for certain contributory pensions. At present, they can be backdated on a reduced scale up to five years, but the period of such backdating will now be reduced to a maximum of six months. If that is the case, the section obviously will have a serious negative impact on new applicants.