Written answers

Tuesday, 24 May 2005

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 264: To ask the Minister for Social and Family Affairs if he proposes to review entitlement to contributory pension with a view to including, on a [i]pro rata[/i] basis, persons who have insufficient contributions to qualify; and if he will make a statement on the matter. [17436/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The qualifying conditions for contributory old age pensions require a person to have paid at least 260 contributions at the appropriate rate, enter insurance ten years before pension age and achieve a yearly average of at least ten contributions paid or credited on their social insurance record from 1953 — when the unified system of social insurance came into effect — or the date of entry into insurance, if later. An average of 48 contributions is required to qualify for a pension at the maximum rate.

Several measures have been introduced making it easier for people to qualify for pensions. These include easing of the basic qualifying conditions, the introduction of pro rata pensions to recognise situations where people have contributions at different rates and special pensions such as the pre-1953 payment and the special self-employed pension.

In considering changes to the system it is necessary to ensure that the contributory principle which underpins entitlement is upheld. This requires that people meet a minimum contribution threshold and also that payments do, as far as possible, reflect the level of contribution which individuals make. In this regard, the range of pro rata and special pensions already available give adequate recognition to the level of contributions which individuals have made to the social insurance fund. The situation will, however, be kept under review and changes considered where appropriate.

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