Marie Moloney (Labour)

My understanding is that this section relates to contribution requirements, which are being brought into line with those in respect of the old age pension, namely, a person must have paid 520 paid contributions before becoming a voluntary contributor. Most people have 50 years within which to make social contributions. The requirement now is that ten of the contributions made during those 50 years would be paid contributions, following which the person may make voluntary contributions. Very few people actually make voluntary contributions because if sick they would be on disability and entitled to a credit contribution and if they become unemployed would also be entitled to a credit contribution.

A case brought to my attention was that of a woman who ran a bed and breakfast for a number of years who, when she retired owing to old age, despite having paid her self employed contributions, had not reached the yearly average and could not in order to obtain credits sign on for unemployment benefit as her husband was working opted to make voluntary contributions. We now have home-makers' and carers' credits. Few people will be availing of the voluntary contribution provision. As I understand it, the requirement is that during the period when a person must make contributions at least ten of those contributions must be paid contributions. This has nothing to do with yearly averages and so on rather it relates to paid contributions.