Darragh O'Brien (Fianna Fail)

Section 3 relates to a significant increase in the contribution period allowed, from 260 to 520 contribution weeks, to qualify for the contributory State pension, particularly for voluntary contributions. In the national pensions framework 2010 we proposed to replace the average contribution period, but the fundamental problem here is that the contributory requirements have been doubled in a very short period of time. If my reading of this is correct it will be introduced in April 2013, which means there will be no time for people to make up a deficit because between now and then the maximum number of contributions that can be made is 52. Anyone far short of the mark will lose out on what they thought they would receive. In the main we are speaking about people who are 66 years of age or will soon reach their 66th birthday.

These changes in eligibility conditions are very wide off the mark and are being introduced seven years earlier than was proposed previously. In the national pensions framework 2010 it had been decided a new regime would come into place in 2020 because, according to the introduction of that document, the introduction of total contributions approach at this stage would see a reduction in the levels at which pensions are paid immediately. This is why it was not done in the pensions framework 2010. The previous Government decided a new regime would be put in place, but not until 2020 to allow those making voluntary contributions time to increase the level of those contributions. As the Minister knows, many of these people worked at home to rear families and had breaks in their employment. This will also make it difficult for people who 20 years ago may have worked as a student and then left the workforce before returning after finishing their education.

I believe this is a very significant change and would like to hear the Minister's rationale for it. From my reading of it, the Minister is, although not necessarily going against the Pensions Framework 2010, expediting the changes envisaged therein seven years earlier. How many people will be affected by this change in the short term? Section 3(1)(a) provides that in the case of a person who becomes a voluntary contributor paid contributions prior to 6 April 2013 shall be 520 rather than 260, which is a significant change in terms of eligibility. I would like to know what savings the Minister expects to achieve as a result of this measure and why there is such a hurry to make this change. I believe this change is being made under the radar and that people will not realise the significance of it until they apply for their expected entitlements. I would like to hear the Minister's views on that.