Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 222: To ask the Minister for Social and Family Affairs his plans to allow persons to continue to work and pay PRSI pension contributions beyond pension age to gain eligibility for an old age contributory pension; and if he will make a statement on the matter. [39843/05]

Séamus Brennan (Dublin South, Fianna Fail)
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In order to qualify for a contributory pension a person must satisfy a number of conditions in relation to social insurance contributions. However, only contributions made to the end of the contribution year before a person reaches pension age may be counted towards satisfying these qualifying conditions.

An increase in workforce participation of older people is one of the more important measures identified at EU level as a means of ensuring the sustainability of pensions systems in the future. In this regard, one of the issues examined by the Pensions Board in its report on the national pensions review, which I recently received from the board, is the incentives we can offer to encourage longer working among older people. Options to enhance a person's social welfare pension through longer working could be an important measure in this area, and one which deserves very serious consideration.

The national pensions review will be published early in the new year. I hope it will engender a national debate on the future direction of Ireland's pensions system and following on from this I would plan to bring forward a number of measures in this area for consideration by the Government.

Róisín Shortall (Dublin North West, Labour)
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Question 223: To ask the Minister for Social and Family Affairs further to the announcement in the budget 2006 speech that earnings from employment of €100 per week will be disregarded in the means test for non-contributory old age pension, the steps he has taken or intends to take to ensure that a person will not lose secondary benefits such as fuel allowance, medical card or others if they choose to exploit this reform; the discussions he has had with other Ministers in this regard; and if he will make a statement on the matter. [40000/05]

Séamus Brennan (Dublin South, Fianna Fail)
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In assessing means for non-contributory pension purposes, account is taken of any cash income the person or his or her spouse may have, together with the value of capital and property, except the home. Weekly means of €7.60 per week are disregarded and all means in excess of that figure, including those from earnings from employment, are assessed in full.

The recent budget made provision for a number of very important measures which are designed to target resources at particular groups of older people. In considering these measures I was anxious to target those who are at the greatest risk of poverty; allow people to supplement their social welfare pension through employment; encourage saving; and simplify the system of income support for older people who do not receive contributory pensions.

Budget 2006 provides for an increase of €16 per week, 9.6%, for all non-contributory pensioners. Non-contributory pensioners will receive an increase of €17 per week, 11.4%. The fuel allowance is being increased by €5 a week.

On budget day I was also pleased to announce that I proposed to introduce, in September 2006, a standardised State non-contributory pension, replacing the old age pension and, for recipients aged 66 and over, the blind pension, widower's pension, one parent family payment, deserted wife's allowance and prisoner's wife's allowance.

All the schemes in question feature a common means disregard of €7.60 per week, which has not increased since the 1970s. The means disregard for the new non-contributory pension will be €20 per week, an increase of €12.40 per week. Approximately 34,000 pensioners who are currently in receipt of a reduced rate of payment will gain from this change. The increase in the personal rate of payment will be up to €12.50 per week while the qualified adult rate, where applicable, will increase by up to €8.30 per week.

In addition, I also propose to introduce a specific additional disregard of €100 per week where the pensioner is in employment. This new disregard relating to earnings from employment is intended as an initial incentive to facilitate non-contributory pensioners who wish to continue working, or to re-enter the workforce. Accordingly, recipients who are in employment will receive an additional increase, depending on the level of their earnings, in their rate of payment over and above the increases I have already outlined.

The usual rules continue to apply in relation to entitlement to secondary benefits such as the fuel allowance etc. However, I was pleased to announce changes in the rules governing the rent and mortgage interest supplement in particular, which will allow persons to earn more from part-time work and retain entitlement. Entitlement to a medical card is a matter for my colleague, the Tánaiste and Minister for Health and Children.

Furthermore, consequent on the increase in the means disregard to €20 per week, a single person with no other means will be able to have up to €35,000 in capital and still qualify for a pension at the maximum rate. This figure is doubled in the case of a pensioner couple.

By any standards, the levels of increases announced in the budget are exceptional. The proposed modernisation of the current arrangements is also a further demonstration of our commitment to all those who are elderly.

Séamus Brennan (Dublin South, Fianna Fail)
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In assessing means for non-contributory pension purposes, account is taken of any cash income the person or his or her spouse may have, together with the value of capital and property, except the home. Weekly means of €7.60 per week are disregarded and all means in excess of that figure, including those from earnings from employment, are assessed in full.

The recent budget made provision for a number of very important measures which are designed to target resources at particular groups of older people. In considering these measures I was anxious to target those who are at the greatest risk of poverty; allow people to supplement their social welfare pension through employment; encourage saving; and simplify the system of income support for older people who do not receive contributory pensions.

Budget 2006 provides for an increase of €16 per week, 9.6%, for all non-contributory pensioners. Non-contributory pensioners will receive an increase of €17 per week, 11.4%.

On budget day, I was also pleased to announce that I proposed to introduce, in September 2006, a standardised State non-contributory pension, replacing the old age pension and, for recipients aged 66 and over, the blind pension, widower's pension, one parent family payment, deserted wife's allowance and prisoner's wife's allowance.

All the schemes in question feature a common means disregard of €7.60 per week, which has not increased since the 1970s. The means disregard for the new non-contributory pension will be €20 per week, an increase of €12.40 per week. Approximately 34,000 recipients of a reduced rate of the relevant payments will gain. The increase in the personal rate of payment will be up to €12.50 per week while the qualified adult rate, where applicable, will increase by up to €8.30 per week. This increase in the means disregard will benefit all those who are assessed with means derived from financial settlements with their children or others.

In addition, I also propose to introduce a specific additional disregard of €100 per week where the pensioner is in employment. This new disregard relating to earnings from employment is intended as an initial incentive to facilitate non-contributory pensioners who wish to continue working or to re-enter the workforce. Accordingly, recipients who are in employment will receive an additional increase, depending on the level of their earnings, in their rate of payment over and above the increase outlined above.

Furthermore, consequent on the increase in the means disregard to €20 per week, a single person with no other means will be able to have up to €35,000 in capital and still qualify for a pension at the maximum rate. This figure is doubled in the case of a pensioner couple.

By any standards, the levels of increases announced are exceptional. The proposed modernisation of the current arrangements is also a further demonstration of our commitment to all those who are elderly.