Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 131: To ask the Minister for Social and Family Affairs if there are proposals to give people on a pro-rata contributory pension the same increases as recipients of the contributory pension; and if he will make a statement on the matter. [38275/06]

Séamus Brennan (Dublin South, Fianna Fail)
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In order to qualify for the maximum rate of the state pension (contributory) a person must, amongst other qualifying conditions, achieve a yearly average of at least 48 contributions paid or credited on his/her social insurance record. Reduced pensions are paid to those with yearly averages as low as 10 contributions and arrangements are also in place for the payment of pro-rata pensions to those with mixed rate insurance records or contributions from other EU member status or countries with which Ireland has a reciprocal agreement. The range of reduced payments has been expanded over the years to allow more people to qualify for a contributory pension.

Reduced rate or pro-rata pensions are paid as a percentage of the full rate payment and, in order to ensure that the relationship between the various rates is maintained, Budget increases are also applied on a pro-rata basis. Applying the full budgetary increase to those with reduced payments would erode the differentials which exist and which are intended to reflect broadly the level of contribution which a person has made to the social insurance fund.