Written answers

Wednesday, 25 January 2006

Department of Social and Family Affairs

Social Welfare Benefits

8:00 pm

Paul McGrath (Westmeath, Fine Gael)
Link to this: Individually | In context

Question 821: To ask the Minister for Social and Family Affairs if the regulations governing the payment of the reduced rate of contributory old age pension to those self employed persons who did not have ten years of social insurance payments will be reviewed; if a 60% payment to those who had a six year contribution record and a 70% payment to those who had seven years contribution and so on will be awarded; and if he will make a statement on the matter. [2312/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

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.

The special half-rate pension for self-employed people was one of a number of measures which was introduced by the Government to provide a basic payment for groups who would not otherwise qualify for a social welfare pension. In this case, the measure was designed to benefit self-employed people who were already over 56 years of age when compulsory self employed social insurance was introduced in 1988 and who could not therefore satisfy the condition of having entered insurance ten years before pension age. This particular group also had the option of receiving a refund of a portion of their social insurance contributions.

The special pension, which is based on five years contributions, is payable at 50% of the standard rate and, as already indicated, its objective was to provide a basic payment to people who would not otherwise qualify for a pension. A similar arrangement was provided to cater for people with pre-1953 social insurance. This special pension was seen as a reasonable response to the position of the self-employed and represents good value for the contributions made. There are no proposals to enhance the payment on the lines suggested.

Comments

No comments

Log in or join to post a public comment.